Intel set to invest $5 Billion in Israeli plant to bolster production

Isreal’s Minister of Economy and Industry, Eli Cohen, has stated that Intel has plans to spend $5 Billion to expand production ion their Kiryat Gat facility, a location where they have already invested $6 billion to upgrade the facility from 22nm to 10nm production.

Intel is expected to receive major Tax breaks in Israel thanks to this investment, which is expected to create new jobs within the nation both during the fab’s expansion and afterwards. The exact details of this deal have not been decided yet, though the company is expected to receive grants from Israel and other benefits.  

If this deal is finalised, Intel will begin investing in the facility this year, with plans to increase the plant’s productivity in 2020 after the expanded facility become fully operational. If previous grants are anything to go by, Intel should be receiving a 10% grant from Israel’s government.

At this time it is unclear whether or not this expansion will be used to house additional 10nm equipment or become home to Intel’s future process technologies.