Intel Secures $3.2 Billion Grant from Israel for State-of-the-Art $25 Billion Chip Plant in the South

 Israel Grants Intel $3.2 Billion for Groundbreaking $25 Billion Chip Plant Amidst Gaza Conflict

In the midst of a fierce conflict with Gaza, Israel's government announces a substantial $3.2 billion grant for Intel Corp's cutting-edge $25 billion chip plant in southern Israel. The deal, confirmed on Tuesday, serves as a significant display of support from a major US company during a time when global calls for boycotting Israel are on the rise due to the ongoing conflict.

The grant, constituting 12.8 percent of the total investment, accompanies Intel's commitment to purchasing $16.6 billion worth of goods and services from Israeli suppliers over the next decade. The new facility is expected to generate several thousand jobs, offering a boost to the economy.

Israeli Prime Minister Benjamin Netanyahu, who unveiled the deal in June, hailed it as "unprecedented" and "the largest investment ever in the State of Israel." Intel's existing presence in Israel includes four development and production sites, with an expansion plan for the Kiryat Gat site forming a crucial part of the company's efforts to fortify the global supply chain.

Despite the ongoing conflict, Intel sees the investment as a show of confidence in Israel's economy, according to statements from the finance and economy ministries. The plant, operating with Intel 7 technology, is set to open in 2028 and run through 2035, producing 10-nanometer chips.

Intel's CEO Pat Gelsinger, spearheading a global strategy to regain dominance in chipmaking, has invested billions in building factories across three continents. The new Israeli plant, named Fab 38, marks the company's latest substantial investment, reinforcing its position in the competitive chip market. Construction has already commenced, and the plant is expected to play a crucial role in Intel's global manufacturing landscape.