Intel Plans $10.9 Billion Fab in Israel

Article By : Dylan McGrath

Intel will spend about $10.9 billion to build a new 300mm fab in the Israeli city of Kiryat Gat, according to Israel's finance minister, Moshe Kahlon.

Intel will spend about $10.9 billion to build a new 300mm fab in the Israeli city of Kiryat Gat, according to Israel's finance minister, Moshe Kahlon.

Several Israeli publications and the Reuters news service reported that Kahlon revealed the new fab project in a tweet Monday. Intel issued a statement in Israel which confirmed the plan.

Intel responded to an EE Times request for comment by referring to a blog post by Ann Kelleher, Intel’s senior vice president and general manager of manufacturing and operations, which was published last month. In the post, Kelleher said Intel was "in the early planning phase for manufacturing site expansions in Oregon, Ireland and Israel, with multi-year construction activities expected to begin in 2019."

Israeli business publication Globes reported that Intel asked that Israel for a state grant amounting to about 10% of the cost of the project. The report indicated that Intel is already preparing the physical infrastructure for the new fab.

In the Intel statement issued Monday in Israel, Daniel Benatar, vice president and general manager of Intel’s manufacturing plant in Kiryat Gat, said, “The business plan that will be submitted continues to prepare for Intel’s future in Israel and Kiryat Gat and continues to demonstrate the strong performance of Intel Israel."

Intel's existing fab in Kiryat Gat. (Source: Lehava Center Qiryat Gat via the PikiWiki – Israel free image collection project)

Last year, Israel's ministry of finance revealed that the company would spend about $5 billion over two years to upgrade its existing fab in Kiryat Gat from 22nm to 10nm technology.

Kahlon reportedly said that the new fab would bring thousands of new jobs to the South of Israel. Intel already employs about 10,000 people in the country directly.