Tuesday, December 26th 2023

Intel's Largest Ever Chip Fab Investment will be a $25 Billion Facility in Israel

by
AleksandarK
 Discuss (65 Comments)
Intel has secured a $3.2 billion grant from the Israeli government for constructing a new $25 billion chip fabrication facility in southern Israel. This represents the company's largest-ever investment in a manufacturing facility. Intel's expansion aims to strengthen global semiconductor supply chains and reduce reliance on singular geographies like Taiwan. The new Fab 38 plant will be built alongside Intel's existing Fab 28 facility in Kiryat Gat. Construction has already begun, with operations slated to start in 2028 and serve until 2035. Intel expects to create thousands of local jobs as well. The company will receive a reduced 7.5% corporate tax rate and has committed to $16.6 billion in local procurement. The grant comes amid Israel's ongoing conflict with Palestinian militant group Hamas.

However, Intel's decades-long presence and investments in the country showcase economic priorities persevering. Its key processor technology was and is being designed in Israel labs. The Kiryat Gat expansion aligns with Intel CEO Pat Gelsinger's strategy of manufacturing diversification through mega-investments across the US, Europe, and Israel. It follows the company's record $20 billion fab project in Ohio. With significant government subsidies at each site, Intel aims to restore market dominance against rivals like AMD and Nvidia through scale of manufacturing. The new Israeli fab will complement Intel's lineup of leading-edge technologies and help maintain Israel's reputation as a global semiconductor hub.
Source: Reuters

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65 Comments on Intel's Largest Ever Chip Fab Investment will be a $25 Billion Facility in Israel

#1
john_
This period, I would think twice or even more to invest 25 billions in Israel.
Posted on Reply
#2
Steevo
Nice to see US tax dollars at work
Posted on Reply
#3
Rayz
john_This period, I would think twice or even more to invest 25 billions in Israel.
Can smell the hate in that comment of yours from miles away.
Posted on Reply
#4
JAB Creations
RayzCan smell the hate in that comment of yours from miles away.
Because making sound logical business decisions is based on hate instead of say, not spending billions of dollars on an extremely high tech facility that would make a highly tempting target for people with shoulder mounted rocket launchers.
Posted on Reply
#5
close
RayzCan smell the hate in that comment of yours from miles away.
Israel is a war zone now. A chip fabrication plant is particularly sensitive to explosions, contamination, etc. which can easily take it out of operation. It's also very expensive to repair in case of attacks.

Immediately thinking of hate speech is really dragging the conversation into the gutter and says more about what's in your mind than in OP's.
Posted on Reply
#6
Rayz
closeIsrael is a war zone now. Immediately thinking of hate speech is really dragging the conversation into the gutter and says more about what's in your mind than in OP's.
And always been a war zone, unfortunately. but that didn't stop those fabs from making the "greatest hits" of Intel.
Posted on Reply
#7
thesmokingman
RayzAnd always been a war zone, unfortunately. but that didn't stop those fabs from making the "greatest hits" of Intel.
And then they were passed by like yesterdays hits.
Posted on Reply
#8
RandallFlagg
JAB CreationsBecause making sound logical business decisions is based on hate instead of say, not spending billions of dollars on an extremely high tech facility that would make a highly tempting target for people with shoulder mounted rocket launchers.
Tel Aviv is one of the largest tech hubs in the world, by most measures 2nd only to 'Silicon Valley'.

This isn't new.

nocamels.com/2018/06/tel-aviv-tech-hub-world/

www.bbc.com/news/business-15797257

www.forbes.com/sites/adrianbridgwater/2020/02/21/how-israel-became-a-technology-startup-nation/?sh=70250ac1780e
Posted on Reply
#9
phanbuey
RayzAnd always been a war zone, unfortunately. but that didn't stop those fabs from making the "greatest hits" of Intel.
So Taiwan has also been making "greatest hits" but this goes against the whole "Supply Chain Redundancy" the federal govt is going for.

"Most of the western is reliant on fabs located in really sketchy geopolitical areas... I know what will fix it! Let's invest 25BN into Tel Aviv!"
Posted on Reply
#10
RandallFlagg
phanbueySo Taiwan has also been making "greatest hits" but this goes against the whole "Supply Chain Redundancy" the federal govt is going for.

"Most of the western is reliant on fabs located in really sketchy geopolitical areas... I know what will fix it! Let's invest 25BN into Tel Aviv!"
Intel has been opening fabs all over the world, so that's not really accurate.

Ireland, Arizona, New York, Ohio, Germany, Malaysia, Poland, Israel. Seems pretty diverse to me.
Posted on Reply
#11
Dristun
RayzCan smell the hate in that comment of yours from miles away.
Where is the hatred in discussing investments, lol. Especially considering:
1) People are bombarded with news about the place being a warzone 24/7.
2) Most people can't add 2+2 and don't realize Israel is a huge tech hub.
Posted on Reply
#12
phanbuey
RandallFlaggIntel has been opening fabs all over the world, so that's not really accurate.

Ireland, Arizona, New York, Ohio, Germany, Malaysia, Poland, Israel. Seems pretty diverse to me.
And that's great... except for THE LARGEST investment went into a region that's currently having a hard time getting ships in and out...

Maybe, if the goal is to diversify away from geopolitical risks, that's not a wise investment.
Posted on Reply
#13
RandallFlagg
phanbueyAnd that's great... except for THE LARGEST investment went into a region that's currently having a hard time getting ships in and out... hmm.

Maybe, if the goal is to diversify away from geopolitical risks, that's not a wise investment.
I don't think Israel is having a hard time getting ships in and out, the Red Sea - > Suez Canal -> Med route is not one they need since they have coastline on the Med.

Most of the same concern could be said of South Korea, Japan, or pretty much any S. American or African country. Outside of the west, most of the world is not known for its stability. There's pretty much zero chance that Israel is going anywhere, so it's as good a spot as any.
Posted on Reply
#14
john_
RayzCan smell the hate in that comment of yours from miles away.
Well, I have bad news for you. Smells don't travel through internet, so it must be something (very) close to you.
Sorry couldn't resist.

Seriously. My comment had nothing to do with hate or love or whatever.
Posted on Reply
#15
phanbuey
RandallFlaggI don't think Israel is having a hard time getting ships in and out, the Red Sea - > Suez Canal -> Med route is not one they need since they have coastline on the Med.

Most of the same concern could be said of South Korea, Japan, or pretty much any S. American or African country. Outside of the west, most of the world is not known for its stability. There's pretty much zero chance that Israel is going anywhere, so it's as good a spot as any.
That's some serious De Nile...
Posted on Reply
#16
67Elco
Before everyone gets their panties in a wad you might consider it in a biblical sense...Israel will be here long after the rest of us have gone to dust lol.
Posted on Reply
#17
RandallFlagg
phanbueyThat's some serious De Nile...
It's really not. Israel is relatively peaceful most of the time, and is quite capable of defending itself as it has repeatedly demonstrated.

By contrast, 140 Christians were slaughtered in Nigeria over the Christmas holiday, Venezuela has been nationalizing industries at will for decades and is near a shooting war with the UK over an oil field in Guyana, North Korea has a new nuclear reactor that's making plutonium 4-5X faster than before, China is effectively invading small Philippine islands unchecked, and there's a proxy war with a nuclear superpower in Europe.

So no, I don't think there's anything special there.
Posted on Reply
#18
phanbuey
RandallFlaggIt's really not. Israel is relatively peaceful most of the time, and is quite capable of defending itself as it has repeatedly demonstrated.

By contrast, 140 Christians were slaughtered in Nigeria over the Christmas holiday, Venezuela has been nationalizing industries at will for decades and is near a shooting war with the UK over an oil field in Guyana, North Korea has a new nuclear reactor that's making plutonium 4-5X faster than before, China is effectively invading small Philippine islands unchecked, and there's a proxy war with a nuclear superpower in Europe.

So no, I don't think there's anything special there.
Yes yes.. a region at war for the last 70 years is "relatively peaceful".... nothing there. Never mind the regular, active military operations there, or that it and its trading routes are surrounded by hostile forces. Or there are regular rocket and terrorists attacks. We should build really fragile infrastructure there -- for sure.
Posted on Reply
#19
67Elco
phanbueyYes yes.. a region at war for the last 70 years is "relatively peaceful".... nothing there. Never mind the regular, active military operations there, or that it and its trading routes are surrounded by hostile forces. Or there are regular rocket and terrorists attacks. We should build really fragile infrastructure there -- for sure.
Well, to be fair, steps are being undertaken as we speak to rectify that situation...hopefully for the long term. ;) Laugh all you want...Israel is not leaving the party. They have operated their own nuclear program since the '60's...I think they can handle miscreants and their bottle rockets just fine.
Posted on Reply
#20
kondamin
For a company that is failing real hard according to some, they sure do manage to find loads of money for investment in fabs.

tens of billions in Europe, in the us in Israel.
Posted on Reply
#21
Count von Schwalbe
Nocturnus Moderatus
kondaminFor a company that is failing real hard according to some, they sure do manage to find loads of money for investment in fabs.

tens of billions in Europe, in the us in Israel.
Tax dollars at work...
Posted on Reply
#22
thesmokingman
kondaminFor a company that is failing real hard according to some, they sure do manage to find loads of money for investment in fabs.

tens of billions in Europe, in the us in Israel.
You haven't been paying attention to the US scrambling like idiots to de-globalize huh?
Posted on Reply
#23
67Elco
Uh...if I read the article in question correctly it is "Israeli" tax dollars as incentive. The current powers that be are to stupid to keep winners in the fold.
Posted on Reply
#24
RandallFlagg
kondaminFor a company that is failing real hard according to some, they sure do manage to find loads of money for investment in fabs.

tens of billions in Europe, in the us in Israel.
"..according to some"

Intel is in position now to leapfrog TSMC at the 2nm node. Specifically, they should have 20A in 2024 with Arrow Lake, which will have backside power delivery from the get go.

TSMC won't have a high power N2 node with that until 2026.

spectrum.ieee.org/intel-20a
Posted on Reply
#25
Jism
john_This period, I would think twice or even more to invest 25 billions in Israel.
Israel has one of the most clever people in tech you can imagine. Cannot say that of those stuck in the middle ages still.
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