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Updated December 26th, 2023 at 18:35 IST

Israel to partly fund Intel’s $25 billion chip plant

The Israeli government has approved $3.2 bn government grant for the plant.

Reported by: Business Desk
Intel presently operates four development and production sites in Israel, including a manufacturing plant in Kiryat Gat
Representative Image | Image:Pixbay

 

 

Israeli  government has approved a $3.2 billion grant for Intel Corp to facilitate the construction of a new $25 billion chip plant in southern Israel, as announced by both parties on Tuesday.
This development unfolds amidst Israel's ongoing conflict with the Palestinian militant group Hamas, following the October 7 attack by Hamas on Israel.
The expansion initiative at Intel's Kiryat Gat site is deemed a crucial aspect of the company's strategy to fortify a more resilient global supply chain. Intel underscored this move, emphasising its commitment to manufacturing investments in Europe and the United States, both ongoing and planned.
In addition to the substantial grant, which constitutes 12.8 per cent of the total investment, Intel has pledged to procure goods and services worth 60 billion shekels ($16.6 billion) from Israeli suppliers over the next decade. Simultaneously, the new facility is anticipated to generate several thousand jobs.
Intel presently operates four development and production sites in Israel, including a manufacturing plant in Kiryat Gat, employing nearly 12,000 individuals in the country.
While Prime Minister Benjamin Netanyahu had announced in June that Intel would construct a new $25 billion chip plant in Israel, Intel had not officially confirmed this investment until now.
However, Intel has disclosed that construction activities are already in progress for the site expansion, encompassing clean rooms and supporting structures. A significant portion of the construction, including pile casting and initial floors, has been completed.
The scheduled launch of the new plant is set for 2027, with operations extending through 2035.

(With Reuters inputs)

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Published December 26th, 2023 at 18:35 IST

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