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Saturday, May 25, 2024

Intel Invests $25 Billion in Israeli Chipmaking Factory

Intel announces a groundbreaking $25 billion chipmaking factory in Israel, the largest investment in the country's history.

The Israeli government and Intel have jointly announced plans for a groundbreaking $25 billion investment to build a chipmaking factory in the southern region of the country, marking the largest investment in Israel’s history. This move comes as part of Intel’s broader strategy to bolster its global supply chain and enhance resilience in the face of geopolitical tensions. The chipmaking giant already employs 11,700 individuals in Israel and has invested over $50 billion in the country over the past half-century.

Prime Minister Benjamin Netanyahu had initially disclosed the project in June, emphasizing its significance as the largest investment ever by an international company in Israel. The confirmation of the $25 billion investment was made public on Tuesday, with Israel’s Finance Minister Bezalel Smotrich expressing enthusiasm for the unprecedented venture. In a social media post, Smotrich highlighted the potential for high-quality employment opportunities and substantial contributions to Israel’s economic growth.

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As part of the agreement, the Israeli government is set to provide a grant of $3.2 billion to support the expansion of Intel’s chipmaking facility in Kiryat Gat. The investment is expected to span several years, with the grant intended to facilitate the growth of the manufacturing capabilities in the region. Additionally, Intel has committed to purchasing $16.6 billion worth of goods and services from Israeli suppliers over the next decade.

Intel’s investment in Israel aligns with its broader strategy to invest heavily in semiconductor manufacturing globally. In 2022, the company announced plans to invest $20 billion in two new chipmaking facilities in the United States and up to $90 billion in new European factories. The Israeli plant is scheduled to open in 2028 and operate through 2035, contributing to Intel’s efforts to reassert its leadership in the semiconductor industry.