Israel’s government has agreed $3.2 billion grant for Intel’s plan to set up a $25 billion chip manufacturing plant in southern Israel.
Intel, in an official statement, highlighted the significance of expanding its Kiryat Gat site, labeling it a crucial step in bolstering the global supply chain’s resilience. This strategic maneuver aligns with Intel’s overarching strategy, which encompasses substantial manufacturing investments in Europe and the United States, Reuters news report said.
The grant, constituting 12.8 percent of the total investment, marks just a fraction of the commitment. Intel has also pledged to procure goods and services worth 60 billion shekels ($16.6 billion) from Israeli suppliers over the next decade. Moreover, the forthcoming facility is anticipated to generate employment opportunities numbering in the thousands.
With four development and production hubs already operational in Israel, including an existing manufacturing stronghold in Kiryat Gat, Intel is a major employer in the country, boasting a workforce of nearly 12,000 individuals.
Earlier speculations were validated when Prime Minister Benjamin Netanyahu disclosed Intel’s plan to establish the $25 billion chip plant in Israel back in June. While Intel had remained reticent about confirming this substantial investment, recent statements from the corporation have shed light on the project’s progression.
Remarkably, Intel has disclosed that construction is well underway for the site’s expansion, encompassing critical components like clean rooms and ancillary support structures. Notably, a substantial portion of the infrastructure, including foundational work like pile casting and initial floor installations, has already reached completion.
The anticipated inauguration of the new plant is slated for 2027, with operations anticipated to span through 2035, signifying a significant long-term commitment to Israel’s technological landscape.