Intel has always had a development center in Israel, which undertakes a considerable part of the technology research and development work. Shortly after becoming Intel's CEO in early 2021, Pat Gelsinger made expansion plans to build a new development center (IDC21) covering thousands of square meters in Haifa's Matam Science Park, not far from Intel's existing facility (IDC9). But earlier this year, Intel canceled the project, but that doesn't mean it's slowing down its investment there. 
Intel will build a new fab in southern Israel, which is scheduled to start production in 2028 and operate until 2035, with a total investment of $25 billion, the largest foreign investment in Israel's history, according to related reports. Intel's expansion aims to strengthen the global semiconductor chain, enable a diversification strategy, and reduce dependence on a single region. The new facility is Fab 38, adjacent to Intel's Fab 28 near Kiyegate, about 42 kilometers from the Gaza Strip. The Fab 28 uses the Intel 7 process to produce the chips, and the Fab 38 is likely to use the Intel 18A process. Intel will also receive an investment of 128% of the subsidy, about 32$500 million. In addition, Intel will receive 75% corporate tax rate reduction. With the heavily subsidized market, Intel aims to reassert its market dominance over rivals such as AMD and Nvidia by expanding production.
It is understood that Intel currently has about 12,000 employees in Israel, and Mobileye has another 2,000 employees. The new project is expected to create thousands of local jobs, and Intel has committed to purchasing about $16.6 billion worth of goods and services from Israeli merchants over the next 10 years.