The new factory will be built in Kiryat Gat and the chip giant has committed to purchase products and services worth NIS 60 billion from Israeli suppliers in the next decade.
The chip giant Intel will build a new factory in Kiryat Gat (Fab38) with an investment of 25 billion dollars – 15 billion dollars more than its original plans. In return, the government will grant the company a package of incentives in the amount of 3.2 billion dollars, which will be spread over several years. Intel’s investment plan, which was submitted to the government and approved this week, includes a commitment on its part to purchase products and services worth NIS 60 billion from Israeli suppliers over the next decade.
The new plant is expected to start production within four to five years, and according to the company will significantly expand the local chip production capacity and the scope of Intel’s exports from Israel by billions of dollars. In 2022, Intel’s exports from Israel amounted to 8.7 billion dollars – about 5.5% of all local high-tech exports, and about 1.75% of the GDP of the State of Israel.
The plant will include chip production using innovative ultraviolet (EUV) lithography technology, and will be managed by Merav Ben Hamo Kariaf. According to the company’s statement, the new investment will bring the total scope of Intel’s investments in Israel to approximately 50 billion dollars.
Intel marks the 50th year since the beginning of its operations in Israel. The Israeli representative office was established in Ben Shemen Beach in 1974 and employed five employees. Today, Intel is the largest employer in Israeli high-tech, with 11,700 employees. The Israeli activity is managed by Daniel Ben Atar and Karin Eybshitz Segal. The company owns three development centers in Israel – in Haifa, Jerusalem and Petah Tikva, and two production plants fab 28 and fab 38 which is currently under construction. Its main areas of activity in Israel are computing, connectivity, AI, cyber security and production.
Pat Gelsinger, CEO of Intel Global, expressed in an interview on the Fox network, support for workers in Israel and emphasized Intel’s deep commitment to Israel. Among other things, Gelsinger stated: “Israelis are the most resilient people in the world. Despite the war, they did not miss the production of a single wafer of silicon or the commitment they had to product development; They are the toughest people there is. That’s why we’ve been there for 50 years. We were the first high-tech company to come to Israel and start the ‘Technician’. They are resilient people and we support them.”
