Intel Corp. plans to build a “huge and unprecedented” $25 billion advanced chip manufacturing plant in Israel, Prime Minister Benjamin Netanyahu announced Sunday.
The deal in principle would see a factory open in Kiryat Gat in 2027, according to a statement from Israel’s Finance Ministry.
“This is the largest investment ever made in the state of Israel,” Netanyahu’s office said a tweet sunday “It is an expression of great confidence in the Israeli economy and reflects the strength of the free economy that we have built and the technological economy that we are developing here.”
Intel has been operating in Israel since 1974 and has several facilities there.
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The spokesperson confirmed the company’s “intention to expand manufacturing capacity in Israel” in support of CEO Pat Gelsinger’s “IDM 2.0” strategy, which includes expanding manufacturing capabilities worldwide .
Intel is looking to reduce its reliance on Asian chip manufacturing to avoid potential disruptions in the global supply chain. Last week, the Santa Clara, Calif.-based company announced a $4.6 billion semiconductor test and assembly facility in Poland.
Intel shares rebounded to their best week in 14 years on Friday, as analysts and investors expressed excitement about AI opportunities to drive stronger growth.