Israeli government grants Intel $3.2 billion for chip plant growth
Photo: Israeli government grants Intel $3.2 billion for chip plant growth (GettyImages)
Intel has secured a $3.2 billion grant from the Israeli government for a $25 billion expansion of its chip manufacturing facilities in Kiryat Gat, Israel. It is expected to generate several thousand jobs and bolster semiconductor technology and talent in the region, according to The Times of Israel.
The agreement for Intel's expansion was initially discussed in 2019, with a reiteration in 2021 during CEO Pat Gelsinger's visit to Israel.
The investment, amid Israel's conflict with Hamas, is seen as a vote of confidence in the Israeli economy and is part of Intel's global strategy to strengthen the semiconductor supply chain.
The Kiryat Gat facility, operational for over 20 years, is set to open its expanded site by 2028, with construction underway. This expansion aligns with Intel's global investments in Germany and Poland.
The Israeli government's support reflects its commitment to fostering technological advancements and economic growth.
Strategic expansion
Intel's involvement in Israel dates back to 1974, with significant investments in the country over the years, including the $15 billion acquisition of Jerusalem-based Mobileye in 2017.
The Kiryat Gat plant has been a cornerstone of Intel's operations, contributing substantially to Israel's GDP and tech exports.
Despite the recent withdrawal from the acquisition of Tower Semiconductor due to regulatory issues, Intel's decision to expand in Israel underscores its long-term commitment to Israeli technology and economic development.
Also, we recently wrote that Chinese companies are buying up American chip manufacturing equipment despite several restrictions imposed by the United States on exporting such goods.
