Intel confirms $3.2B incentive from Israel for a new $25B chip plant

Intel (NASDAQ:) has finalized an incentive package with Israel to bolster the expansion of its Kiryat Gat wafer fabrication operations.

The incentives amount to 12.8% of Intel’s intended $25 billion investment in the site.

Moreover, Intel has pledged to spend 60 billion shekels ($16.55 billion) with Israeli suppliers over the next decade.

While Israel had previously announced the total investment, this agreement confirms Intel’s commitment to fortifying its presence in Kiryat Gat.

The investment 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 United States,” Intel said in a statement.