Intel’s $25 Billion Chip Plant Project Receives $3.2 Billion Grant from Israel Amid Conflict

In a significant move for the technology industry, Israel’s government has agreed to grant Intel a sum of $3.2 billion to establish a new $25 billion chip plant in southern Israel. This decision marks the largest investment by a company in Israel’s history. Intel has been a significant presence in Israel since 1974 and currently operates four development and production sites in the country, employing nearly 12,000 people.

Intel’s investment, which will span over five years, involves a commitment to purchase 60 billion shekels (approximately $16.6 billion) worth of goods and services from Israeli suppliers over the next decade. The establishment of the new facility, named Fab 38, is anticipated to create several thousand jobs, contributing to Israel’s economic growth and innovation.

Intel’s vice president Daniel Benatar highlighted that the support from the Israeli government would ensure that Israel remains a global center of semiconductor technology and talent. The company has previously received around $2 billion in grants from the Israeli government for other facilities over the past 50 years.

Intel’s global expansion is not limited to Israel. The company plans to spend more than 30 billion euros ($33 billion) in Germany to develop two chip-making plants in Magdeburg, as part of a larger investment drive across Europe. Additionally, Intel announced an investment of up to $100 billion to build potentially the world’s largest chip-making complex in Ohio, showcasing its ambition to restore its dominance in chip-making and better compete globally.

The Israeli government’s decision to provide this grant to Intel comes at a time when the country is involved in ongoing conflict, emphasizing the strategic importance of fostering a resilient global supply chain and supporting technological advancement.

The new plant in Israel, Fab 38, is expected to open in 2028 and operate through 2035, signaling a long-term commitment from Intel to its operations in the country. This move is part of Intel’s broader strategy under CEO Pat Gelsinger to invest billions in building factories across three continents, thereby enhancing its competitive stance against rivals like AMD, Nvidia, and Samsung.

This investment by Intel in Israel is a testament to the country’s growing prominence in the global tech landscape, especially in semiconductor technology, and reinforces the notion of international collaboration in the tech industry for mutual economic and technological advancement​​​​​​.



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