Intel Corp on Tuesday confirmed that it would invest US$25 billion in Israel after securing US$3.2 billion in incentives from the country’s government.
The outlay, announced by the Israeli government in June and unconfirmed by Intel until now, is to go toward an expansion of the company’s wafer fabrication site in Kiryat Gat.
The incentives amount to 12.8 percent of Intel’s planned investment.
.Photo: Reuters
“The expansion plan for the 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 US,” Intel said in a statement.
Intel is among chipmakers diversifying manufacturing outside of Asia.
The semiconductor pioneer is trying to restore its technological heft after being overtaken by rivals including Nvidia Corp and Taiwan Semiconductor Manufacturing Co (台積電).
The Israeli government asked Intel to begin operations at the plant by 2028 and continue them until at least 2035.
Intel also committed to spending 60 billion shekels (US$16.6 billion) with Israeli suppliers over the next decade, creating thousands of direct and indirect jobs.
The company employs 11,700 people in Israel.
Construction for the expansion is under way.
The Israeli Ministry of Finance said that the investment is the largest by any company in the country.
“The timing, which comes as the world is highly competing for chip investments, is a significant vote of confidence in Israel’s economy,” the ministry said in a separate statement.
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