Intel Suspends Expansion of Factory Plan in Israel
Intel has announced a suspension of its planned expansion of a major factory project in Israel, which was set to inject an additional $15 billion into a chip plant. This decision affects the Kiryat Gat site in southern Israel, where Intel was already undertaking a $10 billion expansion project.
Intel, a global leader in semiconductor manufacturing, had committed to significantly boosting its operations at the Kiryat Gat facility. However, the company has now paused the next phase of this expansion. When approached by AFP, Intel did not provide specific reasons for the halt and did not link it to the ongoing conflict with Hamas in Gaza.
Company Statement
In a statement, Intel emphasized its continued commitment to Israel, describing the country as one of its key global manufacturing and research and development sites. The company highlighted the complexity of managing large-scale projects in the semiconductor industry, which often requires adjustments to timelines.
“Decisions are based on business conditions, market dynamics, and responsible capital management,” Intel stated, noting the necessity of adapting to changing circumstances.
Intel's Presence in Israel
Intel has a long-standing presence in Israel, marking its 50th year with the establishment of a research center in Haifa. The company has grown to become the leading employer in Israel’s tech sector during the 2010s, significantly contributing to the industry’s development.
In 2017, Intel acquired Mobileye, an Israeli startup specializing in autonomous driving and driver assistance technology, for $15.3 billion. While Intel floated part of Mobileye's capital on the New York Stock Exchange in October 2022, it retains control of the company.
Future Prospects
Despite the pause in the Kiryat Gat expansion, Intel’s statement suggests that the company remains committed to its operations in Israel. The future of the project will likely depend on evolving business conditions and market dynamics.
Intel CEO Pat Gelsinger delivered a speech at the Taipei Nangang Exhibition Center during Computex 2024, highlighting the company's ongoing initiatives and strategic focus.
