Intel Plans Israel’s Largest Investment With $25 Billion Chip Plant

• Intel is set to invest $25 billion in establishing a new chip production facility in Israel following a grant from the government.
• The project is expected to generate thousands of jobs, even as Israel grapples with the Hamas conflict.

Intel has confirmed its intentions to establish a $25 billion chip-making factory in the Kiryat Gat region of Israel. Prime Minister Netanyahu called it the biggest investment in the history of Israel. The move came after the chip maker received a $3.2 billion grant from the government to expand its production capabilities in the country.

In exchange for the grant, Intel has pledged to purchase over $16 billion worth of goods and services from Israeli suppliers over the coming decade. The development is expected to bolster Intel’s activities in the country substantially. The company already has four production and development facilities in Israel. An existing chip-making factory in Kiryat Gat employs nearly 12000 workers.

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Intel’s investments in Israel join a long list of other projects worldwide. The company has already invested $4.6 Billion in a semiconductor assembly and testing facility in Poland, $20 billion in an Ohio chip production plant, and $30 billion in Germany for semiconductor fabrication facilities. Intel accounts for 5.5% of Israel’s overall technology exports and 1.75% of the nation’s GDP.

Despite the wide scope of the ongoing Hamas conflict, a notable portion of buildings for the new facility, including support facilities and clean rooms, have already been constructed. The completed facility is set to be ready for operations by 2027 and will be expected to be in operation at least till 2035.

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