June 11, 2024 Intel Corporation is reportedly halting plans for a $25-billion factory in Israel, according to Israeli financial news website Calcalist. The chipmaker did not confirm or deny the report.
In response to the report, Intel highlighted the need to adapt large-scale projects to changing timelines without directly mentioning the specific project. “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.”
In December, Israel’s government agreed to provide Intel with a $3.2-billion grant to build the $25-billion chip plant in southern Israel. The proposed factory at Intel’s Kiryat Gat site was intended to support the company’s efforts to create a more resilient global supply chain, complementing its investments in Europe and the United States.
Intel currently operates four development and production sites in Israel, including the Fab 28 manufacturing plant in Kiryat Gat, which produces Intel 7 technology, or 10-nanometer chips. The planned Fab 38 plant was expected to open in 2028 and operate through 2035.
Intel employs nearly 12,000 people in Israel.
