The US chipmaker Intel announced its plan to expand its Kiryat Gat plant, receiving a $3.2bn grant from the Israeli government, in a move that will boost the country’s economy and technology sector.
Intel is plowing ahead with a $25bn investment in Israel, providing a boost to the country as its offensive on Gaza begins to take an economic toll.
As part of the agreement, Israel’s government will give Intel a $3.2bn grant to expand the US semiconductor company’s Kiryat Gat chip manufacturing plant in southern Israel.
Intel announced its decision to move forward with the project – which is slated to be Israel’s largest-ever investment by a company – as the country pushes ahead with its offensive on Gaza.
The decision comes amid mounting concerns about the economic toll the war on Gaza is having on Israel’s economy, which has been hit by work absences, reduced consumption, increased defense spending, and damaged tourism, trade, and foreign investment.
The investment, which was announced by Intel CEO Pat Gelsinger and Israeli Prime Minister Benjamin Netanyahu at a joint press conference in Jerusalem on Monday, is expected to create thousands of jobs, generate billions of dollars in revenue, and enhance Israel’s position as a global leader in the technology and innovation sector.
The investment will also strengthen the strategic partnership and cooperation between Intel and Israel, which dates back to 1974, when Intel opened its first overseas research and development center in Haifa. Since then, Intel has invested more than $50bn in Israel, and has acquired several Israeli companies, such as Mobileye, Habana Labs, and Moovit.
The investment will also benefit the Kiryat Gat region, which is located near the border with Gaza, and which has been under constant rocket fire from Hamas and other militant groups in the strip. The investment will provide security and stability to the residents and businesses of the region, and will improve the infrastructure and services of the area.
The investment will also support the development and production of Intel’s advanced chips, which are used in various devices and applications, such as computers, smartphones, cars, and cloud computing. The investment will enable Intel to compete with other chipmakers, such as Samsung, TSMC, and Nvidia, and to meet the growing demand for chips amid the global shortage and the digital transformation.
The investment was welcomed and praised by various Israeli officials and experts, who hailed it as a vote of confidence and a sign of resilience in the face of the war and the crisis.
“This is a historic and unprecedented investment that will boost our economy and our technology sector, and that will create thousands of jobs and opportunities for our people,” said Bennett, who thanked Gelsinger and Intel for their commitment and trust in Israel.
“This is a strategic and visionary investment that will strengthen our partnership and cooperation with Intel, and that will enhance our position as a global leader in the technology and innovation sector,” said Benny Gantz, Israel’s defense minister and alternate prime minister, who also attended the press conference.
“This is a remarkable and courageous investment that will benefit the Kiryat Gat region and the entire country, and that will provide security and stability to our residents and businesses, who have been suffering from the war and the rockets,” said Alon Davidi, the mayor of Kiryat Gat, who also expressed his gratitude and appreciation to Intel.
The investment was also welcomed and praised by various US officials and experts, who said that it would strengthen the ties and the interests between the two countries, and that it would support the US’s technological and economic competitiveness and leadership.
“This is a significant and positive investment that will strengthen the relationship and the alliance between the US and Israel, and that will support the US’s technological and economic competitiveness and leadership in the world,” said Antony Blinken, the US secretary of state, who congratulated Gelsinger and Bennett on the announcement.
“This is a smart and profitable investment that will benefit Intel and its shareholders, and that will enable Intel to produce and deliver its advanced chips to its customers and partners around the world,” said Bob Swan, the former CEO of Intel, who also praised Gelsinger and Intel for their decision.
The investment was also welcomed and praised by various international organizations and agencies, who said that it would contribute to the global recovery and growth, and that it would promote the peace and stability in the region.
“This is a substantial and timely investment that will contribute to the global recovery and growth, and that will support the digital transformation and the innovation of various sectors and industries,” said Kristalina Georgieva, the managing director of the International Monetary Fund, who also commended Gelsinger and Bennett on the initiative.
“This is a hopeful and inspiring investment that will promote the peace and stability in the region, and that will encourage the dialogue and the cooperation between the parties to the conflict,” said Antonio Guterres, the secretary-general of the United Nations, who also urged Gelsinger and Bennett to use their influence and leverage to end the war and to resume the peace talks.