Intel suspended a project to expand a semiconductor factory in Israel, where the company planned an additional investment of $15 billion, without specifying the reason for this decision, against the backdrop of the war in Gaza. The American group had indicated, at the end of December, its intention to expand the Kiryat Gat site, in the south of the country, currently under construction. This was an addition to a factory first announced in early 2019, in a location where Intel already had operations.
“Managing large-scale projects, particularly in our industry, often requires adapting to evolving schedules”an Intel spokesperson told AFP. “Our decisions are based on economic conditions, market developments and responsible management of our capital.” Intel made no reference to the war ravaging the Gaza Strip, in the ninth month of a devastating Israeli offensive in response to the unprecedented Hamas attack on October 7.
The American microprocessor giant has been established in Israel for fifty years and opened a research center in Haifa. During the 2010s, Intel became the largest technology employer in Israel, according to the company’s website. In 2017, the American company paid $15.3 billion to take control of the Israeli start-up Mobileye, specializing in assistance and autonomous driving. Intel listed part of Mobileye’s capital on the New York Stock Exchange in October 2022, but retains control of the company. Israel is Intel’s third largest country by asset size, according to its annual report, after the United States and Ireland.
