Site:

Intel Technology Sdn. Bhd. - Penang, Malaysia
Bayan Lepas Free Industrial Zone, 11900 Penang, Malaysia

Participants:

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 content products.
• 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 devices.
• 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 (CAM).
• The facility in Penang occupies 60 acres and has 3,700 employees.

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 Penang.

Key Results

• 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.

Conclusions

The packaging R&D has been transferred over time from the United States to Intel Penang.