Israel’s government has given its approval for Intel to receive a $3.2 billion grant, unrelated to ongoing tensions with Hamas, to establish a chip plant in southern Israel.
Intel’s decision to invest in this facility is aimed at fortifying the global supply chain and bolstering resilience in the face of various challenges. Furthermore, Intel has outlined plans for manufacturing expansions in both Europe and the United States.
The subsidy, constituting 12.8% of the overall investment, aligns with Israel’s initiative to promote economic progress and innovative ventures. Complementing this, Intel pledges to acquire goods and services valued at 60 billion shekels from local suppliers in the next ten years. The establishment of the new plant is anticipated to generate thousands of jobs.
Already managing four sites in Israel and employing close to 12,000 staff, Intel’s further investment in the region was solidified following an announcement by Prime Minister Benjamin Netanyahu. The expansion project, which includes the construction of clean rooms and essential support structures like pile casting and foundational floors, is currently in progress.
Scheduled to commence in 2027, the new facility is expected to remain operational until 2035. This move by Intel not only reinforces its foothold in Israel but also represents a major boost to the country’s economic framework and job market. The technology leader’s strategic decision is in line with its worldwide agenda, highlighting its pivotal position in the dynamic global technology supply chain.
