The new investment would include building a centre to design and develop technology for the semiconductor giant's products worldwide.

'Malaysia's readily available infrastructure, high-volume manufacturing capabilities, skilled workforce and strong government support for information technology innovation make it an ideal location for our new centre,' Craig Barrett, Intel's chief executive, said in a statement.

Mr Barrett was in Malaysia to visit Intel's manufacturing site in northern Penang state, where he is expected to announce further details of the plan.

Intel operates another manufacturing plant in Penang's neighbouring state of Kedah. It also has a software development centre at Cyberjaya - Malaysia's version of Silicon Valley in California - near the administrative capital of Putrajaya.

Intel has been active in this Southeast Asian country for 31 years and has invested US$2.3 billion here in that period. Intel employs around 8,000 people in Malaysia.