Intel’s $25 billion chip plant in Israel receives $3.2 billion grant

December 26, 2023 09:02 PM AEDT | By Invezz

Intel’s $25 billion chip plant in Israel receives $3.2 billion grant — Image source: Invezz

Strategic expansion amidst regional tensions

The grant comes at a time when Israel is deeply involved in conflict with Hamas. Despite the regional tensions, the Israeli government and Intel are moving forward with significant economic investments.

The expansion of Intel’s Kiryat Gat site is considered a vital step in strengthening the global supply chain, complementing Intel’s other manufacturing investments in Europe and the United States.

A boost to Israel’s economy

The new facility is not just a technological advancement for Intel; it also promises substantial economic benefits for Israel.

The chipmaker has committed to purchasing 60 billion shekels (approximately $16.6 billion) in goods and services from Israeli suppliers over the next ten years.

Additionally, the plant is expected to create several thousand jobs, further bolstering the Israeli economy.

Deepening footprint in Israel

Intel’s presence in Israel is already significant, with four development and production sites, including a manufacturing plant in Kiryat Gat. The company employs nearly 12,000 people across these locations.

The announcement of the new chip plant, which had been hinted at by Prime Minister Benjamin Netanyahu in June, confirms Intel’s deepening investment in the region.

Progress on construction and plans

Intel reports that construction for the expansion of the Kiryat Gat site is already underway, including the development of clean rooms and support buildings. A significant portion of the structure, including foundational work, has been completed.

The new plant is scheduled to open in 2027 and is expected to remain operational until at least 2035, marking a long-term commitment to Israel’s technological and economic landscape.

This investment in Israel’s technology sector comes at a critical time, offering a juxtaposition of economic development and innovation against the backdrop of ongoing regional conflicts.

The post Intel's $25 billion chip plant in Israel receives $3.2 billion grant appeared first on Invezz

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.