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Dec 26, 2023

Israel grants Intel $3.2 billion for new $25 billion chip plant

Posted by in categories: computing, government

JERUSALEM, Dec 26 (Reuters) — Israel’s government agreed to give Intel (INTC.O) a $3.2 billion grant for a new $25 billion chip plant it plans to build in southern Israel, both sides said on Tuesday, 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 Oct. 7 Hamas attack on Israel. It also 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.

Shares of Intel, which has a bit less than 10% of its global workforce in Israel, opened up 2.73% at $49.28 on Nasdaq.

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