Intel Receives $3.2 Billion Grant from Israel for $25 Billion Chip Plant

Intel Corp has secured a $3.2 billion grant from the Israeli government for the construction of a new $25 billion chip plant in southern Israel. This significant investment is considered the largest ever in the State of Israel. The grant, representing 12.8% of the total investment, comes amid increased pressure on Israel due to the conflict in Gaza. In addition to the financial support, Intel committed to purchasing $16.6 billion worth of goods and services from Israeli suppliers over the next decade. The new facility is expected to generate thousands of jobs. Intel's existing manufacturing plant in Kiryat Gat, 42 km from the Gaza Strip, produces 10-nanometer chips and employs a substantial workforce. The new Fab 38 plant is set to open in 2028 and operate until 2035, contributing to Intel's global efforts to enhance its chipmaking capabilities and compete with industry rivals