Intel has confirmed a substantial expansion plan in Israel, committing a total of 25 billion dollars, following a government support package of 3.2 billion dollars. Bloomberg reports that this investment marks a milestone moment for the tech giant and for the Israeli semiconductor sector.
The financial package will accelerate the expansion of semiconductor production in Israel, with Intel outlining the creation of a new chip manufacturing facility in Kiryat Gat. The project is expected to generate thousands of new jobs while building on the company’s existing footprint in the country, which already employs about 11,700 people. The scale of this expansion highlights the strategic role Israel plays in Intel’s global production network and the broader push to diversify supply chains across North America and Europe.
Intel described the Kiryat Gat expansion as a critical element of its ongoing and planned manufacturing investments across Europe and the United States, as well as a step toward a more resilient global supply chain. The company stressed that the project aligns with its long-term strategy to strengthen regional manufacturing capabilities and reduce exposure to risk in any single market.
Government officials in Israel have urged Intel to complete the new facility and bring it into operation by 2028, with a commitment to keep the site running through at least 2035. In addition, Intel has pledged to allocate 60 billion shekels (roughly 16.6 billion dollars) to Israeli suppliers over the next ten years, signaling a deepening of local supplier ecosystems and broader economic benefits for the region.
Officials from the Israeli Ministry of Finance characterized Intel’s investment as the largest ever made by any private enterprise within the country, underscoring the project’s significance for national economic strategy and for attracting further high-tech investment from North American and international firms. The emphasis on job creation, local procurement, and technology development reflects a broader national agenda to grow high-value manufacturing and maintain competitiveness in a changing global tech landscape.
In related industry news, the landscape for mobile processors has seen notable shifts. Huawei’s recent moves to regain leadership in processor development after sanctions have added another layer of dynamics to the global semiconductor market, with implications for innovation, supply chains, and regional tech ecosystems across Canada and the United States. This broader context helps explain why large-scale investments like Intel’s in Israel are closely watched by policymakers and industry players seeking resilient, diversified tech ecosystems that can withstand geopolitical shifts and supply disruptions.