Intel secures $3.2bn grant for Israeli chip plant
Israel's government will give Intel Corp a USD 3.2 billion sweetener to build a new USD 25 billion facility in the south of the country.
Intel currently has four development and production sites in Israel, including a manufacturing plant in Kiryat Gat. Its sites employ nearly 12,000 workers.
And the chip giant appears to be confident of the long term prospects for its activity in the country, despite the ongoing war with Gaza's government Hamas. It's just confirmed that it will expand its Kiryat Gat site is an “important part of Intel’s efforts to foster a more resilient global supply chain, alongside the company’s ongoing and planned manufacturing investments in Europe and the United States,” Intel said in a statement.
Israel's USD 3.2 billion grant could prove to be a shrewd investment for the country's tech sector. As part of the deal, Intel is committed to ordering USD 16.6 billion worth of goods and services from Israeli suppliers. The site will also create several thousand jobs.
Work on the facility is already underway with a launch expected in 2027.