Intel stops expansion plans for factory in Israel

Intel stops the expansion of a major factory project in Israel that would have pumped an additional $15 billion into a chip factory.

The chip giant announced in December that it would expand an ongoing $10 billion project at its Kiryat Gat site in the south of the country, which is currently under construction.

When contacted by AFP on Monday, Intel gave no reason for pausing the next phase and made no connection to the ongoing conflict with Hamas in the Gaza Strip.

“Israel remains one of our key global manufacturing and R&D locations and we remain fully committed to the region,” the company said in a statement.

It went on to say that “managing large projects, especially in our industry, often requires adapting to changing schedules.”

“Decisions are based on business conditions, market dynamics and responsible capital management.”

According to Intel’s annual report, Israel is the company’s third-largest country of operations by asset size, after the United States and Ireland.

The semiconductor giant has been present in Israel for fifty years with the opening of a research center in Haifa.

In the 2010s, Intel became a leading employer in Israel’s thriving technology sector, according to the company’s website.

In 2017, the US company paid $15.3 billion to acquire the Israeli start-up Mobileye, which specializes in assistance systems and autonomous driving.

Intel listed part of Mobileye’s capital on the New York Stock Exchange in October 2022, but retains control of the company.

© 2024 AFP