Plans to erect a $25 billion chip manufacturing facility in the southern region of the nation have been confirmed by the Israel government and Intel. Prime Minister Benjamin Netanyahu has called this investment the largest in Israel’s history.
The US computer giant has over $50 billion in investments in Israel over the last 50 years, and it presently employs 11,700 people there.
In spite of the October 7 strikes and the ongoing conflict between Israel and Hamas, Intel now plans to expand its current chip manufacturing facility at Kiryat Gat, which is located roughly 16 miles northeast of Gaza. The news was first reported by Reuters.
Israel’s Finance Minister Bezalel Smotrich stated on X on Tuesday that Intel had decided to sanction an extraordinary $25 billion investment and locate its new factory in Israel.
According to him, this investment will greatly boost the expansion of the Israeli economy and provide rural areas with high-quality employment prospects with raised productivity.
In June, Netanyahu made the first announcement about the new factory, calling it “the largest investment by an international company in Israel.”
At the time, Intel (INTC) did not confirm the new investment; it only said that plans to grow its operations in Israel were driven by a commitment to fulfill future manufacturing needs.
On Tuesday, the business verified its investment intentions.
According to a statement from Daniel Benatar, co-general manager of Intel Israel, “The expansion of our Kiryat Gat manufacturing facilities is a tremendous source of pride for our employees in Israel and a reflection of their unwavering commitment to excellence.” With the help of the Israeli government, we will be able to maintain this quality and make sure that Israel is a leading global hub for semiconductor talent and technology.
According to Intel, the Kiryat Gat site expansion plan will improve the company’s capacity to procure chips and materials globally. In an effort to reclaim its top spot in the semiconductor market and strengthen supply networks’ resistance to escalating geopolitical unrest, the corporation is making significant investments. In 2022, it announced plans to invest up to $90 billion in new European factories and $20 billion to construct two new chip manufacturing sites in the United States.
A $3.2 billion subsidy from the Israeli government, spread over several years, is reportedly intended to expand the Kiryat Gat facility, according to Israeli media.
According to Reuters, which cited an Intel statement, the business has committed to purchasing goods and services from Israeli suppliers worth 60 billion shekels ($16.6 billion) over the next ten years.
According to the news agency, a large number of the buildings had already been finished and preparations for the site’s development were also underway.
The new plant is scheduled to begin operations in 2028 and run until 2035.
Source: Cosmo Politian