Home / Business / Intel reportedly delayed the installation of a new chip manufacturing plant in Israel

Intel reportedly delayed the installation of a new chip manufacturing plant in Israel

US tech giant Intel Corp. is slow to set up its new semiconductor plant in Israel and has met with subcontractors to inform them of the delay, Calcalist reported on Monday, citing sub-contractors who attended the meeting.

One of the contractors said the deadline would be six months to a year, but that no date had been set for the start of the work.

In May, Intel announced plans to invest some $ 5 billion in the expansion of its Kiryat Gat production facility in Israel, where it produces and develops some of its most advanced computer chips until 2020. As part of this investment plan, Intel is expected to reduce tax by 5% until the end of 2027, as well as a government grant of NIS 700 million ($ 194 million) .

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Asked about the investment in the plant, Intel CEO Bob Swan, who is visiting Israel, said on Sunday that the company had decided to increase production capacity in Israel, the United States, and Ireland. to meet the growing demand.

Bob Swan, CEO of Intel Corp., on the left, and Yaniv Garty, General Manager of Intel Israel, at a press conference on June 16, 2019 at the Peres Center for Peace and Innovation for launch a new accelerator program in Tel Aviv (Shoshanna Solomon). / Times of Israel)

"That's our intention and we tabled a business plan in December or January here," he said, referring to Israel. "Our intention is to increase our capacity and facilities in these three specific markets over time so that we do not hinder the growth of our customers." This has not changed.

In a text message, Intel commented on Calcalist's report: "Intel is committed to Israel and continues to invest in it. Israel is one of Intel's global manufacturing and development centers, with activities such as the Kiryat Gat production plant and Mobileye's headquarters in Jerusalem. "

Intel submitted a business plan to Israeli regulators in January, says the text, "and has since issued no updates on new projects." The statement adds that "every investment is made in stages and that there can always be changes, depending on business, economic and other needs."

Calcalist said that Intel had decided to proceed first with its Irish factory, and at a slower pace than with the Israeli factory.

On Sunday, Swan launched in Tel Aviv an open innovation startups accelerator program that will help start-up companies in Israel to develop in key sectors, including artificial intelligence, standalone systems, and smartphones. 39, other data-centric technologies.

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