Intel to invest $11B to expand chip plant in Israel

Intel
Intel is making an $11 billion investment to expand its chip site in Israel. (Intel)

Aided by a $1 billion government grant, Intel is investing $11 billion to build a new chip factory in Israel, according to various published stories.

After discussions of more than a year, Israel Finance Minister Moshe Kahlon announced Monday night that Intel was expanding its presence in the country by building the new factory, according to Reuters.

According to The Jerusalem Post, Santa Clara, California-based Intel said it would "not publish details at this stage" regarding finances, technologies, plans or a timeline for the investment, but that it would take place at the company's Kiryat Gat manufacturing plant in central Israel.

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Intel currently has a headcount of close to 13,000 employees in Israel and the expansion is expected to add 1,000 new employees. The $1 billion grant was in addition to a 700 million shekel grant that Intel will get in return for a $5 billion expansion of its product operations in Israel, according to Reuters.

Intel first established a presence in Israel in 1974. Intel's latest round of investment in Israel brings its total to $50 billion, according to The Jerusalem Post.

Intel also announced Monday that its exports from Israel last year totaled $4 billion, which was an increase of $300 million compared to 2017, according to The Jerusalem Post.

In addition to Israel, Intel is planning site expansion projects in Ireland and at its plant in Oregon as it looks to diversify its product portfolio into new areas such as automobile safety, according to Reuters.

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