Photo by Slejven Djurakovic on Unsplash
Intel’s Historic $25 Billion Chipmaking Investment in Israel
December 27, 2023
In a groundbreaking move, the Israeli government and U.S. tech titan Intel are partnering to construct a massive $25 billion chipmaking facility in southern Israel. This investment, heralded by Prime Minister Benjamin Netanyahu as “the largest investment ever by an international company in Israel,” further cements Intel’s longstanding commitment to Israel, employing 11,700 staff and investing over $50 billion in the region over the last half-century.
Despite ongoing regional conflicts, Intel is forging ahead with plans to expand its existing chipmaking factory at Kiryat Gat. Finance Minister Bezalel Smotrich recently confirmed Intel’s unprecedented investment, mentioning it will provide high-quality employment opportunities and fuel Israel’s economic growth.
In a strategic move to reassert its leadership in the semiconductor industry and bolster global sourcing capabilities, Intel has confirmed expansion plans for its Kiryat Gat site. This follows a 2022 announcement of substantial investment in new chipmaking facilities in the U.S. and Europe. The Israeli government has also committed a $3.2 billion grant to support the facility’s expansion.
Intel’s new plant is expected to start operations in 2028 and remain functional until at least 2035. Construction efforts are already underway, with significant progress made on some of the buildings. The company has also pledged to purchase $16.6 billion worth of goods and services from Israeli suppliers over the next decade.
“The growth of our Kiryat Gat manufacturing facilities is a tremendous source of pride for our employees in Israel, and a reflection of their unwavering commitment to excellence. Support from the Israeli government will enable us to continue building on that excellence to ensure that Israel remains a global center of semiconductor technology and talent.”
Daniel Benatar, co-general manager of Intel Israel, via CNN
Aside from Kiryat Gat, Intel operates three other advanced development and production sites in Israel. The company also acquired the Israeli driver-assist technology startup, Mobileye, for $15.3 billion in 2017, and took it public late last year.
Earlier, in February 2022, Intel had plans to acquire Israeli chipmaker Tower Semiconductor for $5.4 billion. However, this deal was called off after failing to secure the necessary regulatory approvals, reportedly due to a lack of clearance from China’s antitrust regulator.
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