- Intel Technology Sdn. Bhd. - Penang, Malaysia
Bayan Lepas Free Industrial Zone, 11900 Penang, Malaysia
- David B. Marsing, Vice President/Managing Director
Theoh Swee Thye, General Manager
Mission and Strategy
- Intel Penang was established in 1972 as the first Intel offshore
assembly plant focusing on low-cost, labor-intensive, low-technical
- Intel Penang's portfolio includes the 80486DX4, 80486DX2, Pentium
and Pentium Pro microprocessors; 8-bit, 16 bit and 32 bit
microcontrolers; Pentium core logic chipsets; and communication
- Capital investment has grown from $4 million in 1972 to the current
level of $800 million. This capital investment combined with a trained
work force have been the key to its growth in this region.
Key Elements of Presentation
- Intel-Penang has migrated over time to become a highly automated,
capital-intensive IC assembly and test facility with its own packaging
R&D activity. This growth was accomplished by adding test
activities in 1978 followed by the addition of a customer warehouse and
process and product capability in the early 1980s. By 1990, it had
assumed the customer interface responsibility and R&D
responsibility for microprocessor product packaging, process and
silicon design capability supported by computer aided manufacturing
- The facility in Penang occupies 60 acres and has 3,700
Key Elements of Tour
- This facility experiences approximately 1% monthly attrition of its
employees, down from a previous high of 38%. This improved retention is
credited to programs such as a corporate profit sharing program,
employee stock purchase plan, after work recreation programs,
recognition of Malaysian cultural diversity, and the establishment of
the first company-sponsored kindergarten in Malaysia.
- It supports multiple package types ranging from large-pin-count
ceramic PGAs to QFPs, PLCCs, and PDIPs. Profit and loss responsibility
for the 8 bit family of microcontrollers is now owned by Intel
- Intel Penang has been the most productive facility inside Intel.
This is attributed to its 20-year investment in knowledge and several
cultural differences such as better work ethics among its employees and
the desire to learn more and understand more. Intel has also imbedded
TQM into its work ethics. The facility is highly automated and many of
the pieces of equipment have been locally designed. Test development is
the responsibility of Intel Penang.
- It now has the packaging R&D responsibility for all Intel
microprocessors except the TCP package, which is the responsibility of
the Intel facility in Chandler, Arizona. It has the silicon design
responsibility for microcontrolers and the product engineering
responsibility for all of its products. This total R&D activity is
supported by 120 designers and engineers in Penang.
- Its product engineering team has been responsible for many of the
Intel microprocessor speed enhancements by identifying speed critical
circuits and paths and submitting recommendations to the microprocessor
design teams in the United States.
The packaging R&D has been transferred over time from the United
States to Intel Penang.
Published: May 1997; WTEC