US Tech Giant Reconsiders $25 Billion Investment
Intel, the renowned US multinational corporation, has announced a halt on its planned expansion of a chip manufacturing plant in Israel. This decision, which would have increased the investment by an additional $15 billion, was reported by Israeli financial news website Calcalist on Monday. The tech giant has not provided a specific reason for this pause, leading to widespread speculation about potential links to the ongoing conflict in Gaza, where over 37,000 Palestinians have been killed.
Continued Commitment to Israel
Despite the halted expansion, Intel has reaffirmed its commitment to Israel. In a statement, the company emphasized, “Israel continues to be one of our key global manufacturing and R&D sites and we remain fully committed to the region.” This comes after Intel’s December announcement of increased investment in the chip plant located in Kiryat Gat, southern Israel. The plant, still under construction, was set to reach a total investment of $25 billion with the additional funds and secure a $3.2 billion grant from the Israeli government. The facility is projected to be operational by 2028.
Government Reaction and Future Prospects
Israeli Finance Minister Betzalel Smotrich had praised the investment during its announcement, highlighting its significance amid the country’s ongoing conflict. While the expansion is currently on hold, Intel’s commitment to the region suggests future investments and developments may still be on the horizon, ensuring the continuation of Israel as a pivotal site in Intel’s global manufacturing and research efforts.
