The largest investment in Israel’s history, according to Prime Minister Benjamin Netanyahu, is expected to be a $25 billion chip manufacturing facility to be built in the country’s south, as announced by the Israeli government on Tuesday.
Over the past 50 years, the US computer behemoth has invested over $50 billion in Israel and currently employs 11,700 people there.
According to Reuters, despite the October 7 strikes and the ongoing conflict between Israel and Hamas, Intel now intends to expand its current chip manufacturing facility at Kiryat Gat, which is located roughly 16 miles northeast of Gaza.
Israel’s Finance Minister Bezalel Smotrich stated on X on Tuesday that Intel had decided to sanction a historic $25 billion investment and to locate its new factory in Israel.
“This investment will significantly contribute to the growth of the Israeli economy and will foster high-quality employment opportunities with elevated productivity in remote areas,” he continued.
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) merely stated that intentions to expand its operations in Israel were motivated by a promise to meet future manufacturing needs, without confirming the new investment.
According to Reuters, the business verified the investment intentions on Tuesday. CNN contacted Intel for comment, but Intel did not respond.
In an effort to reclaim its top spot in the semiconductor market and strengthen supply chains’ resistance to escalating geopolitical unrest, Intel 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.
According to Israeli media, the Kiryat Gat facility will expand with a $3.2 billion subsidy from the Israeli government, which will be distributed over a number of years.
In an effort to reclaim its top spot in the semiconductor market and strengthen supply chains’ resistance to escalating geopolitical unrest, Intel 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.
According to Israeli media, the Kiryat Gat facility will expand with a $3.2 billion subsidy from the Israeli government, which will be distributed over a number of years.
According to the news agency, a large number of the buildings had already been finished and preparations for the site’s development were already underway.
The new plant is scheduled to begin operations in 2028 and run until 2035.
The company has four development and production sites in Israel, including Kiryat Gat, the most sophisticated manufacturing facility owned by Intel.
Prior to going public a little more than a year ago, Intel also paid $15.3 billion to acquire Israeli driver assistance technology startup Mobileye in 2017.
It announced plans to purchase Israeli chipmaker Tower Semiconductor for $5.4 billion in February 2022, but the deal was canceled earlier this year due to the inability to secure the necessary regulatory permissions. The deal purportedly fell through due to the lack of approval from China’s antitrust authorities.
