Intel will increase its planned investment in the establishment of a new chip factory in Kiryat Gat in Israel by $15 billion, and is expected to invest $25 billion in total in its construction, the chip giant confirmed on Tuesday.
According to a report on caltech, the Israeli Ministry of Finance announced the expected investment in June, but this is the first time Intel has officially confirmed it.
The report further stated, that the Israeli government agreed to give Intel a $3.2 billion grant for the new plant in Kiryat Gat, which according to Intel is an “important part of Intel’s efforts to foster a more resilient global supply chain, alongside the company’s ongoing and planned manufacturing investments in Europe and the United States.”
In addition to the grant that amounts to 12.8% of the total investment, the chipmaker also committed to buy 60 billion shekels ($16.6 billion) worth of goods and services from Israeli suppliers over the next decade, while the new facility is expected to create several thousand jobs.
