This article was compiled from Aljazeera by Semiconductor Industry Horizons (ID: icviews).
Israel welcomes the largest investment in a foreign company in its history.
Yesterday, Israel** agreed to provide a $3.2 billion grant to Intel Corp. for a planned $25 billion chip factory in southern Israel.
In addition to accounting for 12In addition to the 8% grant, the chipmaker has pledged to buy 60 billion shekels ($16.6 billion) worth of goods and services from Israeli merchants over the next decade, while the new plant is expected to create thousands of jobs.
In June, Israeli Prime Minister Benjamin Netanyahu announced the deal, calling the decision to build a new chip factory "unprecedented," adding that "it is the largest investment ever made by the State of Israel." ”
Intel operates four R&D and manufacturing facilities in Israel, including a manufacturing facility in the town of Kiryat Gat, 42 kilometers from the Gaza Strip.
Intel said in a statement that the planned expansion of the Kiryat Gat facility is "an important part of Intel's efforts to create a more resilient global chain, as well as the company's ongoing and planned manufacturing investments in Europe and the United States."
The plant, which manufactures Intel 7 process or 10nm chips, employs nearly 12,000 people in the country, while indirectly employing another 42,000 people.
Israel's Ministry of Finance and Economy said Intel's investment, especially in the current period and given the global competition in the chip sector, which attracts a lot of investment, is an important sign of confidence in the country's economy. They said the direct financial benefits of the investment to Israel would be much higher than the state allocation.
Israeli Finance Minister Bezarel Smotrich said: "At a time when Israel is waging war against the right and justice must prevail, this investment is an investment in the values of right and just. ”
Intel first started its business in Israel in 1974. Intel's exports are about $9 billion, accounting for 5 percent of total high-tech exports5%。
Intel is one of Israel's 500 or so multinationals and acquired Israeli self-driving car technology company Mobileye for $15.3 billion in 2017. Intel declined to say what products will be produced at the new Fab 38 factory, which Intel said has already begun construction. The Fab 38 plant will open in 2028.
Under CEO Pat Gelsinger, Intel has invested billions of dollars in building factories on three continents to regain its dominance in chip manufacturing and better compete with rivals AMD, NVIDIA, and Samsung. The new factory in Israel is the chipmaker's latest investment in recent years.
Intel's historic $25 billion investment in Israel is part of the company's broader strategy to diversify chip manufacturing and regain technological leadership.
Intel's investment is aimed at expanding its wafer fabrication base in Kiryat Gat. The move is seen as a response to the growing challenge from rivals such as Nvidia and TSMC. The tech giant is trying to reassert its technological leadership in the face of stiff competition, and this huge investment is a key part of that strategy.
Israel** is facilitating this significant investment by providing $3.2 billion in incentives, which is about 12 percent of Intel's total planned investment8%。According to the agreement, Intel must start operations by 2028 and continue until at least 2035.
The investment, the largest among Israeli companies, is seen as a deep vote of confidence in the country's economy. It is expected to create a large number of jobs and is expected to make a significant contribution to Israel's economic growth. In addition, it strengthens Israel's position as the world's leading hub for semiconductor technology and talent.
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