Israeli government on Tuesday, December 26, agreed to grant Santa Clara, California-based chipmaker Intel Corp a 3.2 billion US dollars (Rs 2,66,14,97,60,000) to build a new chip factory worth 25 billion US dollars (Rs 20,79,35,50,00,000) in southern Israel.
The grant is the largest foreign investment ever made in Israel, highlighting the country’s strategic importance in Intel’s global operations.
The new factory to be built in Kiryat Gat, south of Tel Aviv, set to open by 2027 and operate through 2035. It is expected to offer thousands of workers with higher-than-average wages.
Taking to LinkedIn, Daniel Ben Atar, Corporate Vice President at Intel Global, Co-CEO of the company’s Global Manufacturing Organization and Co-CEO of Intel Israel wrote, “A new advanced chip factory located in the south of Israel in Kiryat Gat. I am proud and excited to announce the approval of the investment plan with the Israeli government for the expansion and establishment of a new plant for the production of the newest technologies in the chip world.”
“A factory of incredible opportunities for a promising future, opportunities for the dear Intel employees and the community in the south. Opportunities for future recruitment with a mix of diverse populations,” he adds.
He added, “For making this dream come true, I would like to thank the government of Israel, the municipality of Kiryat Gat and the local councils in the south. And a huge thank you to all our wonderful employees and workers at the factory and to all the construction and support organizations.”
The chipmaker has committed to purchasing 60 billion shekels (Rs 13,76,66,07,01,200) worth of goods and services from Israeli suppliers over the next decade, in addition to a 12.8 percent grant.
Taking to X, Minister of Finance, Bezalel Smotrich, said in response to the announcement that “such an investment, at a time when Israel is facing a war against absolute evil, a war in which good is obliged to win over evil, is an investment in the right and just values that advance humanity.”
According to him, “Intel’s choice to invest in Israel, an unprecedented investment like this, is an expression of confidence in the country and the Israeli economy. This investment will promote high-quality, high-productivity employment in the peripheral communities and affect the growth of the Israeli economy.”
The construction of a new plant, including clean rooms and support buildings, has begun, with certain sections like piles and first floors being finalized.
The new facility will utilize Intel’s distinctive ultra-violet lithography production process, emphasizing the strategic significance of this investment for the company.
This comes amid Israel’s ongoing conflict with Palestinian militant group Hamas, which attacked Israel on October 7.
Since the outbreak of the devastating war on the Gaza Strip on October 7, the Israeli army has intensified its military operations in the West Bank and increased the pace of incursions and raids into towns and camps, resulting in numerous casualties and detainees.
At least 20,674 Palestinians in the Gaza Strip have been killed and over 54,000 injured in Israeli attacks since October 7, according to the ministry of health in Gaza.
The death toll from Hamas’s attack on Israel is estimated to be around 1,140.