Intel Scores Big With $3.2B Government Grant For $25B Israel Chip Plant: Report

Intel Corporation INTC will reportedly get a $3.2 billion grant from Israel's government for the new $25 billion chip plant it plans to build in the southern part of the country.

Apart from receiving a grant equivalent to 12.8% of the overall investment, the chipmaker has also pledged to procure goods and services from Israeli suppliers totaling 60 billion shekels ($16.6 billion) over the next ten years, per a news report by Reuters.

The new facility is scheduled to commence operations in 2027 and continue functioning until 2035.

In June, Prime Minister Benjamin Netanyahu announced that Intel would construct a new $25 billion chip plant in Israel. However, up until now, Intel had refrained from confirming the investment, the report read.

Nevertheless, Intel has stated that construction work is actively progressing for the expansion of the site, which includes the development of clean rooms and support buildings, it added.

Also Read: Is Intel's Reign In Jeopardy? ARM-Based Challengers Threaten Chip Giant's Legacy

Intel noted that a substantial portion of the buildings, including the casting of piles and completion of the first floors, has already been accomplished.

The development plan for its Kiryat Gat site 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, Reuters notes.

The company has 11,700 employees, which includes 3,900 employees in manufacturing and 7,800 in development.

Recently, ASML Holding NV ASML commenced the shipment of critical components for its newest chipmaking machine to Intel.

Intel's D1X factory in Oregon receives ASML's cutting-edge lithography system, priced at €250 million.

Read Next: Tech Giants In Talks: Synopsys Reportedly Aims For Blockbuster Acquisition Of Ansys In 2024

Price Action: INTC shares are trading higher by 2.04% to $48.98 premarket on the last check Tuesday. 

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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