News
Chip maker Intel to halt $25 billion factory in Israel, says news site
JERUSALEM (Reuters) – Intel Corp is suspending plans for a $25 billion factory in Israel, Israeli financial news website Calcalist said on Monday, in a report that the chipmaker neither confirmed nor denied.
The North American company, questioned about the report, cited the need to adapt large projects to changes in deadlines, without referring directly to the project.
“Israel continues to be one of our leading global production and research and development locations, and we remain fully committed to the region,” Intel said in a statement.
“Managing large-scale projects, especially in our industry, often involves adapting to changing schedules. Our decisions are based on business conditions, market dynamics and responsible capital management,” he said.
The Israeli government agreed in December to give Intel a $3.2 billion grant to build the $25 billion chip factory in southern Israel.
Intel previously said the proposed factory for its Kiryat Gat facility, where it already has a chip factory, was an “important part of Intel’s efforts to foster a more resilient global supply chain” alongside the company’s investments in Europe and the United States.
Intel operates four development and production sites in Israel, including its factory in Kiryat Gat, called Fab 28. The factory produces Intel 7 technology, or 10-nanometer chips.
The planned Fab 38 plant was to open in 2028 and operate until 2035.
Intel employs nearly 12,000 people in Israel.
(Reporting by Ari Rabinovitch; Editing by James Mackenzie and Rod Nickel)