BREAKING

Intel receives $3.2bn Israeli grant to expand chip plant near Gaza

By Al Mayadeen English
Source: News websites
26 Dec 2023 19:24
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The Israeli funding represents 12.8 percent of the total Intel investment in the facility with a current 20,000 staffers.

Intel sign at the entrance of the company's facility in "Kiryat Gat" called FAB28, which is located around 30km northeast of Gaza in occupied Palestine in 2020 (Social media)

Tech giant Intel has been awarded a massive $3.2 billion grant by the Israeli occupation government as part of a larger $25 billion initiative to expand its chip manufacturing facility located between "Tel Aviv" and Gaza, both parties said on Tuesday.

This substantial investment was confirmed following an earlier announcement by Prime Minister Benjamin Netanyahu in June.

The announcement was made as the Israeli economy is struggling with unprecedented challenges due to the ongoing war on Gaza.

The brutal aggression on the Strip prompted Gaza's allies in the Axis of Resistance to engage in military escalations against the occupation entity on several fronts, which caused fears among companies and businesses about the security of their investments.

Furthermore, the Yemeni ban on all ships that are Israeli, Israeli-affiliated, or heading to the occupation entity, preventing them from passing through the Red and Arabian seas raised concerns regarding trade supply chains and resource allocations, in addition to higher import costs due to vessels traveling around Africa instead of passing through the Suez Canal to reach the Mediterranean.

Intel's CEO, Pat Gelsinger, revealed earlier that 17 percent of the company's 20,000 workforce are currently on reserve duty in "Israel".

The grant, as reported by Reuters, is expected to fund approximately 12.8 percent of the total investment in the "Kiryat Gat" facility, with the funds set to be paid over four years based on specific milestones.

Intel's commitment also extends to procuring goods and services worth 60 billion shekels (around $16.6 billion) from Israeli suppliers over the next decade.

The new facility, scheduled to begin operations in 2028, is projected to create thousands of jobs and is part of Intel's broader strategy to enhance global supply chain resilience, as stated in a Bloomberg-cited release.

"The expansion plan for the Kiryat Gat site is an important part of Intel's efforts to foster a more resilient global supply chain, alongside the company's ongoing and planned manufacturing investments in Europe and the US," Intel said in a statement, as per Bloomberg.