Intel Corporation has announced it will postpone plans to build a new $25 billion semiconductor plant in Kiryat Gat. The company employs nearly 12,000 people in Israel.
The Israeli government agreed last December to provide the firm with a $3.2 billion grant for construction of the plant.
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The company, which operates four development and production sites in Israel, reaffirmed its commitment to a presence in the Jewish State despite the delay. Nevertheless, some of the firm’s senior executives in Israel were moved to Intel’s new factory in Ohio.
“Israel continues to be one of our key global manufacturing and R&D sites, and we remain fully committed to the region,” Intel said in the announcement. “Our decisions are based on business conditions, market dynamics, and responsible capital management.”
Intel already operates a manufacturing plant in Kiryat Gat, “Fab 28,” that produces microchips. The new plant is to be located at the same site and will be called “Fab 38.” The new plant is expected to produce Intel 7 technology, or 10-nanometer chips.
The Fab 38 plant was originally expected to open in 2028 and operate through 2035, but the timeline for the new factory is now unclear.
