Intel: $25B Plant Investment, $3.2B Israeli Grant

On December 27, it was reported by Reuters that the Israeli government has granted Intel a subsidy of $3.2 billion to support the expansion of its semiconductor manufacturing operations in Kiryat Gat, Israel. Additionally, Intel has officially confirmed an additional investment of $15 billion to establish a cutting-edge semiconductor fabrication facility at the same location, bringing the total investment to an impressive $25 billion. This marks Intel's most substantial investment in Israel to date.

As part of its strategic initiative, Intel announced plans to build a new factory in Kiryat Gat, strategically located 42 kilometers from the Gaza Strip. This move aligns with Intel's commitment to fortify its global supply chain resilience, with mass production slated to commence by 2027. The expansion is expected to create thousands of new employment opportunities.

Intel has maintained a strong presence in Israel since 1974, boasting offices and multiple research and production facilities. These include three cutting-edge research centers in Haifa, Petah Tikva, and Jerusalem, in addition to the semiconductor fabrication facility (Fab 28) in Kiryat Gat. Fab 28 specializes in producing semiconductor products utilizing Intel 7 process technology and currently employs nearly 12,000 individuals. Furthermore, the facility indirectly supports an additional 42,000 jobs. In a notable strategic move in 2017, Intel acquired the Israeli autonomous driving technology company Mobileye for $15.3 billion, underscoring the enduring and fruitful collaboration between Intel and Israel.

According to insights shared by Intel's Israel leadership, the country's exports to Israel reached a record-breaking $8.7 billion in 2022. This constitutes 1.75% of Israel's overall GDP and an impressive 5.5% of the nation's high-tech exports. Additionally, Intel's impact extends to the local economy, with expenditures of $3.5 billion on goods and services from Israeli businesses. This reflects a substantial 60% growth from 2021, surpassing the $2.2 billion spent the previous year. The collaboration between Intel and Israel continues to thrive, showcasing a robust and mutually beneficial partnership.