Israel grants Intel $3.2 billion for new $25 billion chip plant, biggest ever company investment in country
investing.comBy Steven Scheer
JERUSALEM (Reuters) — Israel's government agreed to give Intel Corp (NASDAQ:INTC) a $3.2 billion grant for new $25 billion chip plant it plans to build in southern Israel, both sides said on Tuesday, in what is the largest investment ever by a company in Israel.
The news comes as Israel remains locked in a war with Palestinian militant group Hamas in the wake of the Oct. 7 Hamas attack on Israel and is a big show of support by a major U.S. company and a generous offer by Israel's government at a time when Washington has increased pressure on Israel to take further steps to minimise civilian harm in Gaza.
Intel's shares were up 1.9% at $48.90 in pre-market Nasdaq trading.
The expansion plan for its Kiryat Gat site that is 42 km (26 miles) from Hamas-controlled Gaza 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,» Intel said in a statement.
Under CEO Pat Gelsinger, Intel has invested billions in building factories across three continents to restore its dominance in chip-making and better compete with rivals AMD (NASDAQ:AMD), Nvidia (NASDAQ:NVDA) and Samsung (KS:005930). The new Israeli plant is the latest investment by the U.S. chipmaker in recent years.
Intel plans to spend more than 30 billion euros ($33 billion) to develop two chip-making plants in Magdeburg, as part of a multi-billion-dollar investment drive across Europe to build chip capacity. Berlin has pledged big subsidies to attract Germany's biggest-ever foreign investment.
In 2022, Intel said it would invest up to $100 billion to build potentially the world's largest chip-making complex in Ohio and
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