**: Zhitong Finance App
According to a statement on Tuesday, Israel** agreed to submit a request to Intel (INTC.).US) is providing a $3.2 billion grant for its planned construction of a $25 billion chip factory in southern Israel.
In the statement, Intel said the expansion of its Kiryat Gat factory is "an important part of Intel's efforts to build a more resilient global chain, as well as an important part of the company's ongoing and planned manufacturing investments in Europe and the United States."
In addition to accounting for 12 of the total investmentIn addition to the 8% allocation, the chipmaker has pledged to buy NIS 60 billion ($16.6 billion) worth of goods and services from Israeli businessmen over the next decade, and the new factory is expected to create thousands of jobs.
Currently, Intel operates four development and production sites in Israel, including a manufacturing facility in Kiryat Gat, where the company employs nearly 120,000 employees.
In June, Israeli Prime Minister Benjamin Netanyahu said that Intel would build a new $25 billion chip factory in Israel, but Intel has not officially acknowledged the investment until today. However, Intel said construction of the expansion plant has already begun, including the construction of a clean room and ancillary buildings, most of which have been completed, including pile foundations and first-floor pouring.
The new plant will be operational in 2027 and will operate until 2035.