Intel has announced a monumental partnership with the Israeli government, securing a $3.2 billion grant to build a new $25 billion chip plant in southern Israel. Amidst regional tensions and global semiconductor competition, the investment comes as a strong endorsement of Israel’s tech ecosystem and a push for more sustainable, high-quality jobs in the region.
The new plant, set to open in 2028, is part of Intel’s extensive global expansion under CEO Pat Gelsinger, including significant investments in Europe and the United States. With this new facility, Intel aims to enhance its chip-making dominance and foster innovation in semiconductor technology. The support from the Israeli government not only underlines the country’s role as a semiconductor hub but also aligns with Intel’s strategy to diversify and strengthen its manufacturing capabilities across key global regions.
The investment is expected to have substantial economic and fiscal benefits for Israel, including the creation of several thousand jobs and a commitment from Intel to purchase billions in goods and services from local suppliers. The project, which involves Intel paying a corporate tax rate of 7.5% in Israel, is part of a broader initiative to encourage investment in development areas, offering significant benefits to companies willing to expand their operations in the country.
Intel’s presence in Israel dates back to 1974, with the country playing a crucial role in the development of landmark Intel technologies, including the Centrino chip and Core processors. The new facility, named Fab 38, will continue this legacy of innovation, although specific details about the technology to be produced there remain undisclosed.
As countries worldwide vie for a larger share of the semiconductor market, Intel’s investment in Israel is a testament to the country’s technological prowess and strategic significance in the global tech landscape. With construction already underway, the Fab 38 plant represents a future of continued innovation and economic growth for Israel, solidifying its position as a key player in the high-tech sector.
