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Intel Makes Shock Partnership Move with Israeli Chip Maker

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By Erika John - - 5 Mins Read
Intel logo golden, black background
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Intel logo golden, black background



Chipmaker Intel Corp. is taking faster strides in diversification from Asian territories and has chosen a new partner to achieve this. The new partnership struck with Isreal's Kiryat Gat is aimed to boost production in the country even more. 


The massive tech giant has committed to building a new manufacturing plant in Kiryat Gat, Israel. Based on the public announcements, investment in the plant would amount to a whopping $25 billion, the highest single investment in Isreal.


Obviously, the landmark deal was a welcome development for Israel as the partnership was excitedly announced by Israeli Prime Minister Benjamin Netanyahu on Twitter.


Intel is no visitor in Isreal, the company has been operating in the state since 1974. However, with the new deal, Intel seeks a firmer hold on Isreal's tech landscape. According to a source familiar with Intel partnership plans, they told Bloomberg that the new deal would require Intel to build facilities similar to already existing ones in the country. 


"This morning we announced that agreement has been achieved in principle between @Intel and the Finance Ministry on a huge and unprecedented investment by Intel in Israel, in a chip manufacturing plant, that will use the most advanced technology in the world. $25 billion will be invested in this plant. This is the largest investment ever in the State of Israel. It is an expression of great confidence in the Israeli economy and reflects the strength of the free economy we have built and the technological economy we're developing here," Israel's prime minister announced the deal on Twitter.



Nevertheless, there's some confusion about the exact amount of investment Intel made in the country. While the prime minister claimed it was about $25 billion worth of investments, Bloomberg has made their own claims, saying the deal is an inclusion of a $10 billion investment made by Intel in 2021. 

Intel Keen on Reducing their Asian Dependence 

A spokesperson for Intel confirmed that the company is keen on reducing its independence in Asia. They want to steadily expand their production and operations in other countries like Israel. Their Chief Executive Pat Gelsinger’s “IDM 2.0” strategy is to actively expand their production capacity in several other countries around the world.


It appears that Intel faced a challenge that led to its decision. Due to the Covid-19 pandemic, they experienced difficulties with their chip manufacturing and distribution, even leading to the layoff of thousands of employees. This compelled them to explore new territories and expand their presence in other countries. 

With that in mind, Isreal isn't the only country that has been receiving these Intel investments. The chip maker recently announced a $4.6 billion semiconductor assembly and testing facility in Wroclaw, Poland. These two countries aren't the only ones on their list, as many sources have confirmed the chip maker would be making subsequent investments in the future.