Inside Intel’s largest processor assembly, test and manufacturing facilities

Outside Intel's Penang facility| Credits: Debangana Ghosh (Moneycontrol)

It's not often that one gets to see what goes into building the tiny chipsets that go into your electronic devices, smartphones, and CPUs. These chipsets, used in processors, pack advanced technology that gives them the capacity to compute and process hundreds of gigabytes of data in real time. They are also responsible for the speed of your device.

In 1972, Penang, Malaysia became Intel's second semiconductor assembly, test, and manufacturing (ATM) hub outside the US. Today, Penang is the chipmaker's largest ATM site. In 2021, during the peak of the global chip shortage, Intel announced that it would invest an additional $7.1 billion to expand its facilities there. To date, Intel has invested over $14 billion in Malaysia, including this latest announcement.

Last week, Moneycontrol was invited by Intel to visit its facilities in Penang and Kulim, Malaysia. This was the first time that the chipmaker had opened its facilities to the media. Intel is one of the world's largest chipmakers, competing with Taiwan Semiconductor Manufacturing Company (TSMC), Samsung, AMD, and others.

In the Malaysia facilities, chipsets are cut, prepped, assembled, and packed into CPUs. The actual fabrication process for manufacturing 300 mm wafers from silicon, which are circular flat plate-like structures from which chips are cut out, takes place in the US. The wafers are then sent to the Malaysia facilities.

Before we were allowed to enter the facility, we had to put on what they called a "bunny suit," which is similar to a personal protective equipment (PPE) kit. No fabric, makeup, or cloth hair ties were permitted inside, as the chips are sensitive to even the tiniest dust particles.

Getting ready in the 'bunny suits' before exploring the facility at Penang | Credit: Intel

The process begins with flat circular wafers that undergo the Die Sort, Die Prep (DSDP) step. In this step, they are cut into individual tiny rectangular chips, each containing its own circuit. This operation takes place at the Kulim facility.

The process of cutting the wafer into individual chips is intricate and involves several steps, such as grinding, laser scribing, and mechanical cutting.

Wafers getting set for Die Sort, Die Prep process at Kulim facility | Credits: Intel

Wafers getting cut into individual chips, each with its own integrated circuit | Credits: Intel

The chips are then placed on a transfer medium and readied for sorting. They will be tested in a module made up of 20 individual test cells. Each chip's circuit is tested in a probe card, which has thousands of needles thinner than a human hair. These needles connect the circuit to the test equipment.

Chips getting tested in Die sort operation stage at Kulim facility| Credits: Intel

After testing, the chips are sent to the assembly and test factories in Penang. There, they are placed between a heat spreader and substrate before being shipped to customers.

The assembled chips undergo a series of tests in the Penang facility to check their temperature, stress, performance, and quality. These tests are conducted in six key stages: chip attachment, epoxy and lid attachment (assembly); burn-in, test, and platform performance validation (PPV) (testing).

The end product is a CPU or a processor with the circuit enclosed in a metallic lid.

Depiction of the lifecycle of a chip across stages at the Penang facility. End product is the CPU with the circuit covered in a metal lid | Credits: Intel

In Kulim, Intel has its own System Integration and Manufacturing Services (SIMS) unit, where all the chip testing machinery is built in-house.

Intel's factories also use some interesting automation. For example, there are custom-designed trolley-like lifters that weigh 1,000 pounds and move around the test cell without using any wheels. They float in the air! There are also robots that move around the factory floor to pick and shelve testers without any human intervention.

Intel's SIMS Unit in Kulim facility| Credits: Intel

Employees at work in the SIMS unit| Credits: Intel