iMand - In an unprecedented move, Intel has unveiled its ambitious plan to invest a staggering $25 billion in expanding its manufacturing operations in Israel.
This landmark decision comes as part of a series of strategic announcements that outline the chipmaker's vision for sustained growth and development across its global factory network.
Prime Minister Benjamin Netanyahu, addressing a cabinet meeting on Sunday, hailed the investment as "the largest ever made by an international company in Israel," as reported by Reuters. Intel has enthusiastically confirmed its commitment to expanding operations in Israel, citing a strong drive to meet future manufacturing requirements.
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The announcement on Sunday follows Intel's recent declaration of a $5 billion investment in an assembly-and-test plant in Poland. Furthermore, reports indicate that Intel is poised to unveil a long-anticipated factory in Germany on Monday.
Under the leadership of CEO Pat Gelsinger, Intel is embarking on an extensive modernization and expansion initiative, allocating a budget of over $80 billion to its factory network. The aim is to accommodate forthcoming generations of manufacturing technology while anticipating a resurgence in demand for its microprocessors.
Gelsinger is also optimistic about Intel's venture into contract manufacturing, with plans to produce high volumes of chips for external companies.
Apart from the developments in Israel, Intel is already in the process of constructing new factories in Arizona and Ohio. Prior to this, the company had expressed intentions to expand in Europe and Israel, with the exact timeline remaining uncertain due to negotiations for substantial government subsidies and the chip industry's response to a significant decline in demand, resulting in budget cuts and workforce reductions.
Bloomberg reported that Israeli subsidies are expected to cover approximately 13% of the project's total cost. Additionally, Intel's tax rate is set to increase from the current 5% to 7.5%, as stated by the news service.
The newly announced plans outline Intel's objective to commence production at the Israeli facility by 2027. With a workforce of 22,000 employees in Washington County, Oregon, Intel remains the largest corporate employer in the region. The company's engineering teams are based in Hillsboro, where they develop each successive generation of microprocessors before replicating the manufacturing process in factories worldwide.
Recognizing Intel's significance, the Oregon Legislature recently approved a comprehensive package of incentives worth $210 million for the chip industry. Furthermore, negotiations for additional research tax credits, amounting to millions of dollars, are nearing completion. Intel has been actively advocating for these incentives.
Moreover, Intel has expressed its long-term vision to expand its research factories in Hillsboro and establish a state-of-the-art lithography research laboratory in Oregon, with financial backing from the federal government.
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