Intel to make its largest ever single investment in Israel, with a $25 billion chip-making factory in the south of the country.
Intel and the Israeli government have confirmed plans to construct a $25 billion chip-making factory in Southern Israel.
Prime Minister Benjamin Netanyahu described the Intel move as the biggest investment in Israel's history.
Reuters reported that Israel's government has agreed to give Intel a $3.2 billion grant for the new fab.
Intel already has 11,700 employees in Israel, after investing more than $50 billion in the country since 1974.
The confirmation that Intel will spend an additional $25 billion is a notable show of support for the country in the wake of the deadly 7 October Hamas attack, and the ongoing military operation in Gaza.
Intel is seeking to expand its existing chip-making factory at Kiryat Gat - located 42 km from Hamas-controlled Gaza.
Intel had previously received around $2 billion in the past 50 years in Israeli grants in other facilities there.
Intel had only agreed the new factory in principle at that time.
Reuters reported that Intel's investment will be over five years, and it will pay a corporate tax rate of 7.5 percent instead of 5 percent previously.
The normal tax rate in Israel is 23 percent, but under a local law to encourage investment in development areas, companies receive large benefits.
The new factory, to be known as the Fab 38 plant, is due to open in 2028 and operate through 2035.
Intel of course has also made significant investments in other countries, after been widely courted in the European Union and United States as a result from the chip shortages during the Covid-19 pandemic.
In September 2021 CEO Pat Gelsinger said Intel could potentially invest as much as 80 billion euros to expand chip production in Europe.
In March 2022, Intel had confirmed it would build a chip factory in Germany, in the east German city of Magdeburg.
In June 2023 Intel reached a deal with the German government over 10bn euros in subsidies for its postponed chip manufacturing facility in Magdeburg.
Across the pond in 2022, Intel said it would invest up to $100 billion to build potentially the world's largest chip-making complex in Ohio.
Samsung and Taiwan Semiconductor Manufacturing Co have also announced big investment plans in the United States.
This Cyber News was published on www.silicon.co.uk. Publication date: Thu, 28 Dec 2023 16:43:04 +0000