Israel’s government agreed to give Intel Corp. a $3.2 billion grant for a new $25 billion chip plant it plans to build in southern Israel, both sides said on December 26, in what is the largest investment ever by a company in Israel.
The news comes as Israel remains locked in a war with Palestinian militant group Hamas in the wake of the October 7 Hamas attack on Israel. This is a big show of support by a major U.S. company and a generous offer by Israel’s government at a time when Washington has increased pressure on Israel to take further steps to minimise civilian harm in Gaza.
Intel’s shares rose 1.9% to $48.90 in pre-market Nasdaq trading.
The expansion plan for its Kiryat Gat site which is 42 km (26 miles) from Hamas-controlled Gaza is an ‘important part of Intel’s efforts to foster a more resilient global supply chain, alongside the company’s ongoing and planned manufacturing investments in Europe and the United States,’ Intel said in a statement.
