The Israeli government has approved a $3.2 billion grant for Intel to support the construction of a new $25 billion chip plant in southern Israel, as announced by both parties on Tuesday. This development is occurring amidst ongoing tensions between Israel and the Palestinian militant group Hamas following the October 7 attack. Intel states that the expansion of its Kiryat Gat site is a crucial component of its strategy to enhance the resilience of the global supply chain, complementing the company’s existing and planned manufacturing investments in Europe and the United States, according to a statement from Intel.
In June, Prime Minister Benjamin Netanyahu announced that Intel would construct a new $25 billion chip plant in Israel. However, up until now, Intel had refrained from officially confirming this significant investment.
Daniel Benatar, co-general manager of Intel Israel, expressed pride in the growth of their Kiryat Gat manufacturing facilities, stating, “The growth of our Kiryat Gat manufacturing facilities is a tremendous source of pride for our employees in Israel, and a reflection of their unwavering commitment to excellence.” He further noted that the support from the Israeli government would facilitate the continuation of this excellence, ensuring that Israel maintains its status as a global hub for semiconductor technology and talent.
Written by- V Sharma
