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Intel Corp. plans to build a “huge and unprecedented” $25 billion advanced chip manufacturing plant in Israel, Prime Minister Benjamin Netanyahu announced Sunday.
The agreement in principle would see a factory in Kiryat Gat open by 2027, according to a statement from Israel’s Finance Ministry.
“This is the largest investment ever in the State of Israel,” Netanyahu’s office said in a tweet Sunday. “It is an expression of great confidence in the Israeli economy and reflects the strength of the free economy we have built, and the technological economy we’re developing here.”
Intel has operated in Israel since 1974, and has a number of facilities there.
An Intel
INTC,
spokesperson confirmed the company’s “intention to expand manufacturing capacity in Israel” in support of Chief Executive Pat Gelsinger’s “IDM 2.0” strategy, which includes expanding manufacturing capabilities around the world.
Intel is looking to reduce its reliance on Asian chip manufacturing to avoid potential snags in the global supply chain. Last week, the Santa Clara, Calif.-based company announced a $4.6 billion semiconductor assembly and test facility in Poland.
Intel shares rallied to their best week in 14 years Friday, as analysts and investors expressed excitement about opportunities for AI to drive stronger growth.
