Intel gets a salient $3.2 billion grant from the Israeli Government for chip fab. The chip giant aims to establish a whopping $25 billion chip plant in Israel. It is known to be established in southern Israel, this is sought to be the biggest investment of any company in Israel.
The new chip plant by Intel in Israel is an effort to expand its global supply chain footprint while exploring new geographies.
The company also has ongoing and planned manufacturing investments in Europe and the United States,” mentioned Intel in a statement.
Under CEO Pat Gelsinger, Intel has invested billions in building factories across three continents to restore its dominance in chip-making and better compete with rivals AMD, Nvidia and Samsung.
Intel plans to spend more than 30 billion euros ($33 billion) to develop two chip-making plants in Magdeburg, as part of a multi-billion-dollar investment drive across Europe to build chip capacity. Berlin has pledged big subsidies to attract Germany’s biggest-ever foreign investment.
In 2022, Intel said it would invest up to $100 billion to build potentially the world’s largest chip-making complex in Ohio and rivals Samsung and Taiwan Semiconductor Manufacturing Co or TSMC also have announced big investment plans in the U.S.
Israel’s finance and economy ministries said Intel’s investment, especially in this period and in light of the global competition to attract significant investments in the field of chips, is a significant expression of confidence in Israel’s economy.
They said the investment of Intel has direct fiscal benefits for Israel that will be significantly higher than the state’s grant.
“This investment, at a time when Israel wages war against utter wickedness, a war in which good must defeat evil, is an investment in the right and righteous values that spell progress for humanity,” Finance Minister Bezalel Smotrich said.
In addition to the grant that amounts to 12.8% of the total investment, the chipmaker also committed to buy 60 billion shekels ($16.6 billion) worth of goods and services from Israeli suppliers over the next decade, while the new facility is expected to create several thousand jobs.
Intel established a presence in Israel and 1974 and now operates four development and production sites in Israel, including its manufacturing plant in Kiryat Gat called Fab 28 that produces Intel 7 technology, or 10 nanometer chips, and employs nearly 12,000 people in the country while indirectly employing another 42,000 more.