Israel has approved a substantial $3.2 billion grant for Intel to establish a cutting-edge chip plant in southern Israel, a move unrelated to the ongoing tensions with Hamas. Intel’s investment is strategically aimed at fortifying the global supply chain and increasing resilience. The company has outlined plans for manufacturing expansions in Europe and the United States, with the approved subsidy constituting 12.8% of the overall investment.
This initiative aligns seamlessly with Israel’s broader objective of fostering economic progress and innovation. As part of the commitment, Intel pledges to procure goods and services totaling 60 billion shekels from local suppliers over the next decade. The establishment of the new plant is anticipated to create thousands of jobs.
Currently managing four sites in Israel with nearly 12,000 employees, Intel’s expansion project, recently announced by Prime Minister Benjamin Netanyahu, is already in progress. The construction includes state-of-the-art clean rooms and essential support structures such as pile casting and foundational floors. The scheduled commencement for the new facility is slated for 2027, with operations expected to continue until 2035.