December 28, 2023 /SemiMedia/ -- According to reports, the Israeli government agreed on December 26 to allocate US$3.2 billion to Intel to build a US$25 billion chip factory in southern Israel.

Intel said that the expansion plan of the Kiryat Gat factory in Israel is an important part of Intel's efforts to promote a more resilient global supply chain, and is also an important part of the company's ongoing manufacturing investments in Europe and the United States.

The Israeli government's $3.2 billion in subsidies accounted for 12.8% of the total investment in the chip factory. In addition, Intel has also committed to purchasing goods and services worth 60 billion shekels (approximately $16.6 billion) from Israeli suppliers over the next ten years. New The factory is expected to create thousands of jobs.