Intel has officially confirmed its substantial investment of $25 billion in expanding its chip manufacturing plant in Israel. This commitment follows the approval of $3.2 billion in funding from the Israeli government and a preliminary agreement announced by Prime Minister Benjamin Netanyahu in June 2023, solidifying Intel’s dedication to establishing a new chipmaking facility in Israel. Intel has committed to sourcing $16.5 billion from its suppliers over the next decade.
This strategic move by Intel is integral to bolstering its manufacturing footprint, rectifying a period of under-investment, and positioning itself competitively against industry counterparts such as Taiwan’s TSMC. The expansion plan, initially set in motion with a $10 billion commitment two years ago, now sees an additional $15 billion commitment, marking a series of significant projects aimed at fortifying Intel’s capabilities.
Intel’s association with Israel spans nearly five decades, with the current Fab 28 facility in Kiryat Gat being a key production site, employing 11,700 workers and specializing in the production of 10nm chips. The ongoing construction for the expansion of this facility, estimated at around $25 billion, is already underway.
In a statement reported by the Times of Israel, Intel emphasized that the expansion plan for the Kiryat Gat site is a pivotal element in its broader strategy to cultivate a more resilient global supply chain. “The expansion plan for the Kiryat Gat site is an important part of Intel’s efforts to foster a more resilient global supply chain, alongside the company’s ongoing and planned manufacturing investments in Europe and the United States”, Intel stated.
This expansion aligns with Intel’s concurrent and planned manufacturing investments in Europe and the United States. Notably, Intel is earmarking $30 billion for semiconductor fabrication facilities in Germany and allocating $4.6 billion for a semiconductor assembly and test site in Poland. Additionally, Intel has initiated a groundbreaking ceremony for a $20 billion chip manufacturing plant in Ohio, with production scheduled to commence in 2025.
