According to the Malaysian Investment Development Authority (MIDA), Intel has decided to build a $7.1 billion new manufacturing plant in Penang. This move is made amid the continuing global semiconductor shortage. Although the facility is still years away from production, it will allow more capacity to reduce the risk of future economic disasters.

This move comes when semiconductor manufacturing is becoming a geopolitical concern. The US government wants to boost domestic production and prevent supply shocks from regions outside its control. It is, therefore, attractive that Intel chose to build a Malaysian plant.

Intel CEO Pat Gelsinger has stated that the US government must do more to ensure on-shore production. This led to speculation about Malaysia being the location for the new facility. Coincidentally or not, Antony Blinken, the US Secretary of State, also visits the region. It seems that the USA wants to invest in the region to counter Chinese influence.

This week, Gelsinger will be in Asia to meet with government and business leaders, including those from TSMC (Intel’s concurrent competitor and partner). Although there have been some disputes between the leaders of the two companies in recent weeks, we know that such things will be put to one side when it comes time to sign large-dollar contracts.

It can take a while for products to be on shelves. However, it is great to see large companies invest considerable sums to increase their capacity. Let’s all hope 2022 brings some good news to gamers. We would love to see a GPU that is close to its RRP. However, this will require manufacturing capacity. We can only hope that the investments made since the pandemic outbreak continue to flow down and that we all can move past these shortages.

But there’s always the possibility of another problem. Will there be too many high-tech facilities? Is there a possibility of oversupply? It is possible, according to IDC analysts. We’re all for it if it means that we can buy an RTX4090 for $500. Yeah, we’re dreaming.

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