Intel to Invest $25 Billion in Israel
Intel Corp. confirmed it will invest a total of $25 billion in Israel after securing $3.2 billion in incentives from the country’s government.
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@intel confirmed it will invest a total of $25 billion in Israel after securing $3.2 billion in incentives from the country’s government.#intel #semiconductors #chips #incentiveshttps://t.co/sxxBDSVqSL
— The_Journalbiz (@the_journalbiz) December 27, 2023
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The outlay, announced by the Israeli government in June and unconfirmed by Intel until now, will go toward an expansion of the company’s wafer fabrication site in Kiryat Gat, south of Tel Aviv.
The incentives amount to 12.8% of Intel’s planned investment.
“The expansion plan for the Kiryat Gat site is an important part of Intel’s efforts to foster a more resilient global supply chain, alongside the company’s ongoing and planned manufacturing investments in Europe and the US,” Intel said in a statement Tuesday.
Intel is among chipmakers diversifying manufacturing outside of Asia, which dominates chip production. The semiconductor pioneer is trying to restore its technological heft after being overtaken by rivals including Nvidia Corp. and Taiwan Semiconductor Manufacturing Co.
The Israeli government asked Intel to begin operations at the plant by 2028 and continue them until at least 2035. Intel also committed to spending 60 billion shekels ($16.6 billion) with Israeli suppliers over the next decade, creating thousands of direct and indirect jobs. The company currently employs 11,700 people in Israel. Construction work for the expansion is underway.
Israel’s Finance Ministry said the investment is the largest by any company in the country. “The timing, which comes as the world is highly competing for chip investments, is a significant vote of confidence in Israel’s economy,” the ministry said in a statement.
