The Israeli government said Tuesday that Intel has confirmed plans to build a $25 billion chipmaking factory in the south of the country, an investment Prime Minister Benjamin Netanyahu has described as the biggest in Israel’s history.
The American tech giant already employs 11,700 people in Israel and has invested more than $50 billion in the country over the last 50 years.
Reuters reported that Intel now wants to expand its existing chipmaking factory at Kiryat Gat — about 16 miles northeast of Gaza — undeterred by the October 7 attacks and the ongoing war between Israel and Hamas.
“Intel has chosen to approve an unprecedented investment of $25 billion and to establish its new factory right here in Israel,” Israel’s finance minister Bezalel Smotrich wrote in a post on X on Tuesday.
“This investment promises to foster high-quality employment opportunities with elevated productivity in remote areas and will significantly contribute to the growth of the Israeli economy,” he added.
Netanyahu initially announced the new factory in June, describing it as “the largest investment ever by an international company in Israel.”
Intel (INTC) did not confirm the new investment at the time, saying only that its Israel operations were crucial to the company’s success and that plans to expand them were driven by a commitment to meet future manufacturing needs.
Reuters reported that the company confirmed the investment plans on Tuesday. Intel has not responded to CNN’s request for comment.
Intel is investing heavily in a bid to reassert its position as the leader of the semiconductor industry and to build greater resilience into supply chains in the face of rising geopolitical tension. It said in 2022 that it would invest $20 billion to build two new US chipmaking facilities, as well as up to $90 billion in new European factories.
The Israeli government will provide a grant of $3.2 billion for the expansion of the Kiryat Gat plant, spread over several years, Israeli media reported.
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