Intel Corporation has announced the suspension of construction on a new $25 billion microchip factory in Israel, as reported by Calcalist and confirmed by Intel. The decision comes after Intel clarified its stance on adapting to evolving project schedules, without directly addressing the report about the Israeli site. Intel emphasized its commitment to Israel as a key manufacturing and research location globally.
The construction company overseeing the project, Sicho Infrastructure Company, received a notice from Intel detailing the suspension of certain construction activities related to the expansion of the Kiryat Gat microchip facility. This comes months after the Israeli government approved a $3.2 billion grant to Intel for the construction of new facilities, seen as a significant investment.
The new factory, known as Fab 38, was intended to enhance Intel’s production of advanced microchips, essential for its global supply chain resilience strategy. Intel currently operates multiple development and production sites in Israel, including Fab 28 in Kiryat Gat, which manufactures Intel 7-powered chips. The expansion of Intel’s presence in the country was expected to bring economic benefits and technological advancements.
The decision to suspend construction has led to reactions from advocacy groups like the Boycott, Divestment, and Sanctions (BDS) movement. BDS considers Intel’s decision a victory for its cause, although it continues to criticize Intel’s involvement in Israel. The movement plans to intensify its #BoycottIntel campaign, citing ethical concerns amid ongoing conflict in Gaza.
Meanwhile, Israel’s economy is facing challenges, with indicators of economic decline worsened by geopolitical instability. Moody’s recent downgrade of Israel’s credit rating and negative outlook highlight growing economic pressures, including increasing debt and structural deficits.
In summary, Intel Corporation has suspended construction on its new microchip factory in Israel, citing the need to adapt project schedules. The decision comes after the Israeli government approved a significant grant for the project. The BDS movement has welcomed the suspension as a victory, while Intel reaffirms its commitment to Israel. The country’s economy is struggling, with Moody’s recent downgrade reflecting growing economic pressures.
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https://en.royanews.tv/news/52174/2024-06-19