Intel To Pause $25 Bn Chip Factory In Israel: Report
The Israeli government had previously approved USD 3.2-billion grant to support the construction of the new plant
Chipmaker Intel has reportedly halted its plans to construct a USD 25-billion chip factory in Israel, according to Israeli financial news website Calcalist.
While Intel neither confirmed nor denied the report, the US chipmaker stressed the need to adapt large projects to evolving timelines.
“Israel continues to be one of our key global manufacturing and R&D sites and we remain fully committed to the region,” Intel said in a statement. “Managing large-scale projects, especially in our industry, often involves adapting to changing timelines. Our decisions are based on business conditions, market dynamics, and responsible capital management.”
The Israeli government had previously approved USD 3.2-billion grant to support the construction of the new plant, planned for Intel’s Kiryat Gat site. This site is already home to Intel’s existing Fab 28 chip plant, which produces 10-nanometre chips using Intel 7 technology.
The new Fab 38 plant was expected to commence operations in 2028 and continue through 2035, supporting Intel’s efforts to create a more resilient global supply chain alongside its investments in Europe and the United States.
Intel’s operations in Israel include four development and production sites, employing nearly 12,000 people.
(Inputs from Reuters)
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