Intel Investing $25 Billion In Southern Israel Semiconductor Plant

U.S. technology giant Intel is investing a further $15 billion in a semiconductor chip plant in Israel, bringing its total investment in the factory to $25 billion. 

Californian-based Intel—the world’s largest semiconductor chip manufacturer—has been looking to build a new factory in Israel since 2018, when the company first invested $10 billion. The plant will be built in Kiryat Gat, southern Israel, where the company already has a facility. 

The factory will produce wafers, or thin circular semiconductor slices, which will then be built into microelectronic devices. The plant is expected to begin operating in 2027, creating thousands of new jobs for Israeli workers.

Intel will also pay a tax rate of 7.5% compared to its original 5%, bringing a boost to the Israeli economy. 

Israel has been one of Intel’s most important manufacturing and R&D centers since 1974. 

“Our intention to expand manufacturing capacity in Israel is driven by our commitment to meeting future manufacturing needs and supporting Intel’s IDM 2.0 strategy,” Intel said. 

Israeli Prime Minister Netanyahu said that the new plant would be the largest international investment in Israel ever and “a great expression of confidence in the Israeli economy.”