Edited by: TJVNews.com

In a significant development for the technology industry and Israel’s economy, Intel has officially confirmed its plans to increase investment in the establishment of a new chip factory in Kiryat Gat, Israel by an additional $15 billion, as was recently reported on the Calcalistech.com web site. This brings the total investment by the chip giant to $25 billion, reinforcing its commitment to fostering a more resilient global supply chain, the report added.

The Ministry of Finance in Israel had initially announced the expected investment in June, marking a substantial move in the semiconductor landscape. According to the Calcalistech.com report, the new chip factory is poised to play a crucial role in Intel’s strategic efforts to enhance its global supply chain, complementing the company’s ongoing and planned manufacturing investments in Europe and the United States.

In a groundbreaking agreement, Israel’s government has granted Intel a $3.2 billion subsidy for the Kiryat Gat plant, accounting for 12.8% of the total investment. This financial support reflects the strategic importance attributed to the project by both the Israeli government and Intel, the Calcalistech.com report said. Furthermore, Intel has committed to procuring $16.6 billion worth of goods and services from Israeli suppliers over the next decade, fortifying the economic impact of the project on the local business ecosystem.

The new facility is anticipated to generate several thousand jobs, providing a boost to employment in the region. As was noted in the Calcalistech.com report, Intel already operates four development and production sites in Israel, including an existing manufacturing plant in Kiryat Gat, and currently employs nearly 12,000 people in the country.

While the Ministry of Finance’s announcement was made in June, this marks the first official confirmation from Intel regarding the increased investment. The company stated that construction work is already underway for the expansion of the Kiryat Gat site, including the development of clean rooms and support buildings, the Calcalistech.com report said. A substantial portion of the construction, including the casting of piles and first floors, has been completed.

Intel’s new plant is slated to commence operations in 2027 and will run through 2035. According to Daniel Benatar, Co-General Manager of Intel Worldwide Semiconductor Manufacturing and Co-General Manager of Intel Israel, the facility will have the capability to produce the most advanced chips, catering to the needs of major companies like Apple and Nvidia, Calcalistech.com reported. Benatar highlighted that the plant is aligned with Intel’s strategy to produce products for both Intel and essential customers, playing a pivotal role in the company’s continuous supply chain for advanced chips.

“The plant supports the new strategy to produce products for both Intel and essential customers, and it will be part of the continuous supply chain that Intel is building for very advanced chips. Israel is a very central part of this issue,” he said.

In a conversation with Calcalist, Benatar emphasized Intel’s enduring commitment to Israel, stressing that recent geopolitical events, including the ongoing conflict, have not impacted their investment plans.

“Just a week ago, CEO Pat Gelsinger was interviewed in the U.S. and said that the war had no effect, especially considering Intel’s significant and long presence in Israel,” Benatar said, as was reported on the Calcalistech.com web site.

Calcalistech.com also reported that Benatar lauded Israel’s unique status for Intel, being the only country outside the U.S. where the company conducts both development and strategic production activities. He attributed this success to Israel’s world-class universities, motivated individuals, audacity, and a culture of innovation that fosters success stories.