Following reports that Intel will invest $7.1 billion in a new facility in Malaysia, the chipmaker's stock rose 0.3 % in premarket trading on Monday.

According to a media invitation given out by the Malaysian Investment Development Authority, the company has chosen Malaysia to develop manufacturing capabilities for its innovative semiconductor packaging technology in Penang, Malaysia's northern state.

File:Intel logo (2006-2020).svg - Wikimedia Commons

This is Intel's most recent substantial capacity expansion, following its $20 billion commitment to build two new factories in Arizona. After losing ground to Taiwan Semiconductor Manufacturing, Qualcomm, Nvidia, AMD, and Samsung during the last two decades, the company is now playing catch-up.

TSMC is investing $100 billion over three years to expand its capacity, while Samsung is anticipated to announce plans for large new production in Texas soon.

The battle among governments to entice corporations like Intel, Samsung, and TSMC  to locate their next semiconductor plant has heated up in recent years as companies seek new places to meet record chip demand. A developing rift between the US and China has hampered the search for low-cost manufacturing sites, driving US corporations to go further afield.

As electronic devices find more uses in a pandemic-stricken globe and companies and academic institutions adopt hybrid work and study habits, chip demand has skyrocketed. The auto industry has also increased demand as the current generation of cars grows more technologically advanced.