Intel Confirms $10B Spending On Israeli Chip Plant, Announces Additional $600M R&D Investment: Reuters

Intel Corp INTC disclosed an additional investment plan of $600 million in Israel to expand its research and development (R&D). It also confirmed spending $10 billion on a new chip plant during CEO Pat Gelsinger’s one-day visit to the country, Reuters reports.
The first phase of the plant construction has commenced.
Intel will invest $400 million to convert the Jerusalem Mobileye headquarter into an R&D campus for developing autonomous car technologies.
The chipmaker will also invest $200 million in building an R&D center, called IDC12, in the northern port city of Haifa next to its current development center.
The chip design facility will have a 6,000-employee capacity.
Intel’s Israeli acquisitions include Mobileye for over $15 billion in 2017, artificial intelligence chipmaker Habana for $2 billion in 2019, and Moovit for $1 billion in 2020.
Israel’s Finance Ministry announced a $1 billion grant to Intel in early 2019 for building an $11 billion chip plant.
Intel Israel’s exports grew to 21.2% to $8 billion in 2020, accounting for 2% of Israel’s GDP.
Intel is the largest employer of Israel’s tech industry, with around14,000 workers.
Price action: INTC shares traded lower by 0.50% at $57.24 on the last check Monday.