Chipmaker Intel to halt $25-billion 'Israel' plant

By Al Mayadeen English
Source: Reuters
10 Jun 2024 22:53
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The tech giant admitted that the scope and pace of its manufacturing expansions worldwide are subject to various factors, necessitating adaptability to evolving circumstances.

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In this file photo taken on Saturday, November 14, 2009, an ultra-orthodox Jewish man is seen next to Intel's occupied al-Quds office building. (AP)

Intel Corp (INTC.O) has addressed recent reports suggesting a pause in its $25 billion factory expansion project in "Israel".

In a statement published on Monday, the company reaffirmed "Israel's" significance as a crucial hub for its global manufacturing and research and development activities. Despite the reported halt in expansion plans, the company affirmed its "unwavering commitment to the region."

"Israel continues to be one of our key global manufacturing and R&D sites, and we remain fully committed to the region," stated Intel.

The tech giant admitted that the scope and pace of its manufacturing expansions worldwide are subject to various factors, necessitating adaptability to evolving circumstances.

"Managing large-scale projects, especially in our industry, often involves adapting to changing timelines. Our decisions are based on business conditions, market dynamics, and responsible capital management," the statement added.

Since the onset of the war on Gaza, the deteriorating security situation has compelled many companies worldwide to pull out their investments from the occupied territories.

"Israel's" high-tech sector, which is a cornerstone of the regime's economy, has experienced a notable decline in foreign investment due to the war.

Another factor has been the global student movement calling for universities to divest from Israeli companies.

Many observers suggest this reduction in investment could have long-term implications for "Israel's" economic growth and competitiveness.

On April 11, Samsung Next, the innovation sector of the Korean tech giant, Samsung, announced shutting down its operations in "Tel Aviv", occupied Palestine.