29 Dec 2023 -
 General

Intel will receive $3.2 billion in Israeli funding to build chip factories

tel aviv

Intel’s significant investment in Israel’s technology sector marks a momentous occasion, as the company has committed to establishing a new $25 billion chip plant, supported by a $3.2 billion grant from the Israeli government, reports Reuters. This investment represents the largest by a company in Israel and signals a robust vote of confidence in the region’s burgeoning tech industry.

This development is particularly notable for engineers and professionals in the electronics industry. Notably, Intel’s presence in Israel, dating back to 1974, has been marked by innovations such as the Centrino chip and Core processors, both developed in the country.

Intel’s expansion plan includes the construction of a new plant at its Kiryat Gat site, which is already home to an existing chip manufacturing facility. This initiative is part of Intel’s broader strategy to strengthen the global supply chain and maintain its competitive edge in the semiconductor industry. The new Israeli plant, alongside Intel’s ongoing and planned investments in Europe and the United States, reflects a concerted effort to diversify and reinforce its manufacturing capabilities across three continents.

Under CEO Pat Gelsinger’s leadership, Intel is aggressively pursuing a path to regain its dominance in chip-making, positioning itself against industry rivals like AMD, Nvidia, and Samsung. The Israeli government’s support is crucial in this endeavour, ensuring that Israel remains a key hub for semiconductor technology and talent.

The investment is not just about expanding Intel’s footprint; it also involves a commitment to purchase goods and services worth 60 billion shekels from Israeli suppliers over the next decade ($1 = 3.6145 shekels). This agreement is expected to create thousands of new jobs and significantly contribute to the high-tech exports from the region.

This move by Intel, amidst a challenging geopolitical climate, underscores the strategic importance of Israel in the global electronics and semiconductor landscape. The new Fab 38 plant, whose construction has already commenced, will open in 2028 and will bolster Israel’s position as a leading player in high-tech innovation and production.

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