Intel has unveiled plans for a groundbreaking $25 billion semiconductor facility in southern Israel, a venture hailed by Prime Minister Benjamin Netanyahu as the most significant foreign investment in the nation’s history.
With an existing workforce of 11,700 in Israel and over $50 billion invested over five decades, Intel remains undeterred by recent geopolitical challenges, including the conflict between Israel and Hamas. The tech titan aims to amplify its operations at Kiryat Gat, located approximately 16 miles northeast of Gaza, as initially reported by Reuters.
Bezalel Smotrich, Israel’s finance minister, expressed, “Intel’s unprecedented $25 billion investment underscores its commitment to Israel, promising enriched employment opportunities and propelling our nation’s economic advancement.”
Prime Minister Netanyahu had previously spotlighted this venture in June, emphasizing its monumental scale. While Intel had remained reserved about specifics earlier, the company has now officially affirmed its investment intentions.
Daniel Benatar, co-general manager of Intel Israel, remarked, “Our Kiryat Gat expansion epitomizes our dedication to excellence, ensuring Israel’s stature as a paramount hub for semiconductor technology.”
Intel’s strategic move aligns with its broader ambition to fortify its semiconductor dominance and enhance global supply chain resilience amidst escalating geopolitical dynamics. In 2022, Intel earmarked $20 billion for two new U.S. facilities and up to $90 billion for European establishments.
Sources indicate that the Israeli government is poised to grant a $3.2 billion subsidy for Kiryat Gat’s expansion. Furthermore, Intel commits to procuring goods and services worth 60 billion shekels ($16.6 billion) from Israeli suppliers over the ensuing decade.
Anticipated for inauguration in 2028 and operational until 2035, construction for the facility is already in progress. Intel’s footprint in Israel expands beyond Kiryat Gat, boasting three other developmental and production hubs. Moreover, Intel’s acquisition history in Israel includes the $15.3 billion purchase of Mobileye in 2017 and a planned $5.4 billion acquisition of Tower Semiconductor in 2022, which was later terminated due to regulatory constraints.
