Israel grants Intel $3.2 billion for new $25 billion chip plant – Times of India

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JERUSALEM: Israel’s government agreed to give Intel a $3.2 billion grant for a new $25-billion chip plant it plans to build in southern Israel, both sides said on Tuesday, in what is the largest investment ever by a company in Israel.
The news comes as Israel remains locked in a war with Palestinian militant group Hamas in the wake of the October 7 Hamas attack on Israel. It also is a big show of support by a major US company and a generous offer by Israel’s government at a time when Washington has increased pressure on Israel to take further steps to minimise civilian harm in Gaza.
Shares of Intel, which has a bit less than 10% of its global workforce in Israel, opened up 2.7% at $49.3 on Nasdaq. The expansion plan for its Kiryat Gat site where it has an existing chip plant that is 42 km (26 miles) from Hamas-controlled Gaza is an “important part of Intel’s efforts to foster a more resilient global supply chain, alongside the company’s ongoing and planned manufacturing investments in Europe and the United States,” Intel said in a statement.
Under CEO Pat Gelsinger, Intel has invested billions in building factories across three continents to restore its dominance in chip-making and better compete with rivals AMD, Nvidia and Samsung. The new Israeli plant is the latest investment by the US chipmaker in recent years.
“Support from the Israel government will … ensure that Israel remains a global centre of semiconductor technology and talent,” Intel vice president Daniel Benatar said. Intel had previously received around $2 billion in the past 50 years in Israeli grants in other facilities there. Ofir Yosefi, deputy director general of Israel’s Investments Authority, said Intel chose a higher grant and tax rate over an offer for a lower grant and lower tax rate.


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