Israel grants Intel $3.2 billion for $25 billion chip plant amid Gaza war
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Israel's government has awarded a $3.2 billion grant to Intel as part of a $25 billion investment the chip company is making in a manufacturing facility roughly 40 miles south of Tel Aviv, both sides reportedly said Tuesday.
Why it matters: Confirming Prime Minister Benjamin Netanyahu's preliminary June announcement, Intel's increased investment in Israel comes at a tumultuous time for the country's economy amid the ongoing war with Hamas.
- It also comes as Israel faces increasing criticism for its actions in Gaza, where the civilian death toll continues to rise.
- According to recent comments by Intel CEO Pat Gelsinger, about 17% of the company's 20,000 employees and contractors in Israel are currently on reserve duty. "We've lost several in the conflict from the family, and some of our members have lost their children, and we still have some hostages," he added.
Details: The grant will cover about 12.8% of the total investment in the facility in Kiryat Gat, Reuters reported.
- The grant will be deployed over several years, in accordance with certain milestones.
- Intel also committed to buy 60 billion shekels ($16.6 billion) in goods and services from Israeli suppliers over the next ten years, and the new facility is expected to create several thousand jobs and begin operating in 2028.
- This is a $15 billion extension to the investment in a new facility that Intel announced in 2019.
What they're saying: "The expansion plan for the Kiryat Gat site 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 US," Intel said in a statement, per Bloomberg.
- Intel did not immediately respond to Axios' request for comment.
