Intel Halts US$25B Israel Factory Plan Amid Uncertainty
Updated: Jun 12
Intel Corp has reportedly decided to halt its plans for a $25-billion factory in Israel, according to Calcalist. The chipmaker has not verified or refuted the report, citing the need to adapt large projects to changing deadlines. Intel highlights its commitment to Israel and its importance as a global manufacturing and research and development hub.
When queried , Intel responded by emphasising the importance of adapting large projects to changing deadlines, without specifically addressing the project in issue. However, the firm emphasised its commitment to Israel, adding that the country remains one of its core worldwide manufacturing and R&D locations.
Intel went on to say that managing large-scale initiatives, particularly in the technology business, frequently necessitates adapting to changing deadlines. They make decisions based on business factors, market dynamics, and responsible capital management.
This announcement comes after Israel's government decided in December to provide Intel with a significant $3.2-billion subsidy to develop the $25 billion chip factory in southern Israel. The projected facility, Fab 38, was scheduled to open in 2028 and run until 2035. It was viewed as a critical component of Intel's effort to build a more resilient global supply chain, coupled with investments in Europe and the United States.
Intel now operates four development and production locations in Israel, including Fab 28, a manufacturing plant in Kiryat Gat. This plant produces Intel 7 technology, notably 10-nanometer processors. Intel employs roughly 12,000 people in Israel, establishing a strong footprint in the country's technology industry.
Intel Corp has reportedly decided to halt its plans for a $25 billion factory in Israel, according to Calcalist.
The chipmaker has neither confirmed nor denied the report, citing the need to adapt big projects to changing timelines.
Intel emphasises its commitment to Israel and its status as a key global manufacturing and research and development site.
Source: REUTERS