Intel to Build $25 billion Chipmaking Factory in Israel


Intel, which already employs more than 10,000 people in Israel, plans to build a $25 billion chipmaking factory in the country.

Israeli Finance Minister Bezalel Smotrich confirmed this on social media, microblogging platform X. “Intel has chosen to approve an unprecedented investment of $25 billion and to establish its new factory right here in Israel. This investment promises to foster high-quality employment opportunities with elevated productivity in remote areas and will significantly contribute to the growth of the Israeli economy.”

Intel, active in Israel since 1974, is the country’s largest private employer and exporter. It employs about 12,000 employees at its R&D centers in Haifa, Petah Tikv and Jerusalem, as well as Kiryat Gat. The company is also responsible for indirect employment for 42,000 workers in Israel.

Biggest Investment in Israel’s History

Prime Minister Benjamin Netanyahu described Intel’s $25 billion project as the biggest in Israel’s history. He highlighted the American tech giant’s plans back in June, describing it as the largest investment ever by an international company in Israel. Moreover, the Israeli government is set to give Intel a $3.2 billion grant for the chipmaking factory that would be built in southern Israel.

Daniel Benatar, co-general manager of Intel Israel, said the growth of their Kiryat Gat manufacturing facilities is a tremendous source of pride for their employees in Israel, and a reflection of their unwavering commitment to excellence. “Support from the Israel government will enable us to continue building on that excellence to ensure that Israel remains a global center of semiconductor technology and talent.”

An official statement highlighted that Intel has committed to buy $16.6 billion worth of goods and services from Israeli suppliers over the next decade.

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Intel believes the expansion plan for the Kiryat Gat site will boost its ability to source materials and chips around the world. Through this heavy investment, Intel wants to position itself as the leader of the semiconductor industry and build greater resilience into supply chains amid rising geopolitical tension.

Construction is already underway at Kiryat Gat and a significant portion of the buildings has been completed. The chipmaking factory is expected to open in 2028 and operate through 2035.



Sulaiman keeps an important eye on domestic and international politics while he has mastered history.

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