JERUSALEM: Intel Corporation (INTC.O) has reportedly suspended its intentions to construct a $25 billion factory in Israel, as per Israeli financial news website Calcalist on Monday.
The chipmaker neither confirmed nor denied the report.
Recent communications to Intel’s suppliers indicate the termination of contracts for equipment and materials necessary for the new factory’s establishment. The Ministry of Finance was informed of the company’s decision to halt the plant’s development.
In December, Intel had announced plans to expand its chip manufacturing plant in Kiryat Gat, located in the southern part of Israel. Initially slated to invest $10 billion, the company decided to increase its investment to $25 billion to secure a $3.2 billion grant from the Israeli government.
When approached by AFP, Intel declined to provide a rationale for the postponement of the next phase and did not mention any connection to the ongoing conflict in Gaza.
Intel currently operates four development and production facilities in Israel, including the Kiryat Gat manufacturing plant known as Fab 28, which produces Intel 7 technology, including 10-nanometer chips.
The proposed Fab 38 plant was scheduled to commence operations in 2028 and continue until 2035.
