July 10, 2025 /SemiMedia/ — Intel has begun a new round of global layoffs this week, with its Israel operations significantly affected. Several hundred employees across departments are being dismissed, including approximately 200 staff at its Fab 28 facility in Kiryat Gat. More critically, internal discussions now include the potential full shutdown of the site.

Fab 28 currently manufactures processors, 5G, and AI chips using Intel’s 7 process node (formerly 10nm SuperFin). While still in active use, it lacks EUV lithography tools required for future nodes such as 18A, raising questions about its long-term strategic relevance. Despite previous resistance to layoffs in Kiryat Gat due to government incentives and expansion commitments, Intel appears to be reassessing its priorities amid a global restructuring of manufacturing assets.

The layoffs target mid-level managers, line supervisors, and technicians in the remote operations center (ROC), as part of Intel’s push toward increased automation and organizational flattening. ROC roles, which involve off-site process control and monitoring, are being phased out in favor of automated systems.

Intel previously concentrated workforce reductions in R&D centers in Haifa and Petah Tikva, sparing Fab 28 due to its perceived strategic value. However, that stance appears to have shifted, with company leadership now evaluating whether the site remains viable for future production needs.

While no final decision has been made on the future of Fab 28, Intel emphasized its ongoing effort to become a leaner and more agile organization. The facility may continue operations in the short term and could potentially be upgraded for advanced node production, though its current state suggests diminishing relevance in Intel’s long-term roadmap.