Chapter 3 Linkages for Fostering Innovation Activities – Case ... - ERIA

(along with the focus on future areas) are considered as critical for the furtherdevelopment of E&E sector in Penang.3.2. Case # 2 - Intel MalaysiaIntel Malaysia Sdn. Bhd. founded as a subsidiary of Intel Corporation, USA startedits operations in Penang in 1972 has now grown into the largest, most maturemanufacturing facility outside of the United States. Intel Malaysia now comprises threecampuses and employs more than 8,500 people. Intel Penang is a key assembly andtesting site with capabilities in assembly technology development, VLSI design, failureanalysis, device physics, test tooling, technology development and marketing. Known forits world-class safety standards in the global semiconductor industry, Intel Malaysia isalso a two-time winner of the Prime Minister's Quality Award, a symbol of excellencehonoured to public and private organizations that implement outstanding total-qualitymanagement programs and contribute significantly to the country's economy andcommunity.3.2.1. Factors Attractive in PenangMain motivation to start in Penang (in the 70s) was the efforts of the then ChiefMinister – to promoting and developing certain factors conducive for setting up ofmanufacturing plants – the location factors including availability of cheap labour andsupportive policies of the federal government and good infrastructure. Beginning as amanufacturing centre, Intel Malaysia is now a major R&D centre in the globaloperations of Intel. Key factors in the cluster that helped Intel include human capital,support form national and state level governments – through policies and incentives.3.2.2. Innovations at Intel PenangMore than 70% of the global design and development work at Intel is at the Penang106