Intel Corp (Nasdaq: INTC) has told a major infrastructure company in Israel to halt work on a factory expansion in Kiryat Gat. In the past few days, Intel sent messages requesting that the work be postponed, according to a report by Channel 12 News. The name of the company was not revealed.
Last December, Intel confirmed that as Israel's largest technology employer, it would invest an additional $15 billion in a new chip factory in Kiryat Gat, in addition to the $10 billion it began investing in 2019.
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As part of the agreement between the Israeli government and the chipmaker, Intel will receive a $3.2 billion grant over the years depending on achieving various milestones, most likely hiring and reinvestment goals in Israeli companies and contractors. Intel pledged to purchase products and services from Israeli companies worth 60 billion shekels over the next decade. This is the highest grant ever provided by the Israeli government to a private company, and is estimated at approximately 12% of the total spending to build and modernize the new station.
“Israel remains one of our key global locations for manufacturing and R&D, and we continue our commitment to the region,” Intel said. “As we mentioned previously, the scale and pace of Intel’s manufacturing expansion at the company’s sites around the world depends on a number of variable factors. Managing a project of this size, Especially in our industry, it typically involves schedule adjustments and our decisions depend on business conditions, market dynamics and capital management responsibility.
Published by Globes, Israel Business News – en.globes.co.il – on June 10, 2024.
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