Intel to Receive $3.2 Billion Grant from Israeli Government for Chip Plant
The Israeli government has approved a grant of $3.2 billion for Intel, allowing the tech giant to establish a chip plant in southern Israel. This investment is unrelated to the ongoing tensions involving Hamas and is seen as a move to strengthen the global supply chain and enhance resilience in the face of challenges. Intel has also announced plans for manufacturing expansions in Europe and the United States.
Fostering Economic Growth and Innovation
The grant, which accounts for 12.8 percent of the total investment, is part of Israel's efforts to foster economic growth and innovation. As part of the agreement, Intel has committed to procuring goods and services worth 60 billion shekels from Israeli suppliers over the next decade. The establishment of the new chip plant is expected to create several thousand job opportunities, further contributing to the nation's economy.
Expanding Presence in Israel
Intel already operates four development and production sites in Israel, employing nearly 12,000 people. The company's investment plans in Israel were confirmed following Prime Minister Benjamin Netanyahu's announcement. Construction is currently underway for the expansion, with progress being made in the development of clean rooms and support buildings.
Projected Opening and Long-Term Operations
The new chip plant is projected to open in 2027 and continue operations until 2035. This investment not only solidifies Intel's presence in Israel but also makes a significant contribution to the nation's economic landscape and employment sector. Intel's forward-looking approach aligns with its global strategy and reinforces its role in the evolving technology supply chain.
Overall, Intel's grant from the Israeli government for the establishment of a chip plant showcases the company's commitment to investing in Israel and strengthening its global operations. This move not only benefits Intel but also contributes to the growth and development of Israel's economy.
