Intel will build a $25 billion chip factory in Israel. The information was provided by the local treasury minister and confirmed by the US side.
To realize the investment, the chip factory in Kiryat Gat will be expanded. Interestingly, the factory is located just 40 km northeast of Gaza. According to Reuters, the intention is to start production in 2029.
“It will contribute significantly to the economic growth of our country,” Minister Smotrich wrote on X on social media.
Intel investments in Israel
The government subsidy amounts to $3.2 billion, spread over several years. Intel has committed to purchasing $16.6 billion worth of goods and services from Israeli suppliers over the next decade.
When announced in June this year, the project was heralded by Prime Minister Benjamin Netanyahu as “the largest investment by a foreign company in Israel.”
“The expansion of our manufacturing facilities in Kiryat Gat is a source of pride for our employees in Israel and a reflection of their continued commitment to excellence,” Intel Israel CEO Daniel Benatar said in a statement. He added that Israel wants to build its brand and become the world center of semiconductor technology.
Currently, Intel employs nearly 12,000 people in Israel. people, investing more than $50 million in production.
Chip war
Economic competition in the semiconductor field continues to intensify. The largest players compete strongly for markets.
The European Council adopted a regulation in July known as the ‘chip act’. Americans and Chinese in particular invest enormous amounts in semiconductors. In August 2022, US President Joe Biden signed the ‘CHIPS and Science Act’, under which the country will allocate $280 billion for the production of advanced technologies and scientific research in the fields of, among others: semiconductors.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
