Tuesday, December 26th 2023
Intel's Largest Ever Chip Fab Investment will be a $25 Billion Facility in Israel
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
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.
65 Comments on Intel's Largest Ever Chip Fab Investment will be a $25 Billion Facility in Israel
Yes, Intel still has to pay for part of it. But the incentive is fairly considerable.
My understanding is that, if you get rid of all the naming convention marketing, TSMC N3/N2, Intel 3, and Intel 20A are all actually 5nm class nodes. The big thing here is that Intel will have RibbonFET + backside power + high power node with 20A a year before TSMC has a high power node, and two years before TSMC has backside power delivery.
Intel has already demonstrated backside power delivery, all by itself, giving a 6% performance bump on Intel 4. They've also already shown wafers of Arrow Lake dies on 20A. So unless they fly off the rails somewhere, by the end of 2024 they'll have the most advanced node in the world once again - not TSMC.
This also brings up the point that there is more than just allowing businesses to be tax leeches on the people that builds a successful economy, like a highly educated and well trained work force and these "high tax" states are also usually the most educated.
Interesting choice it's been volatile for a long time
Intel have a crystal ballware app out :wtf:
That is surely a good news for tech enthusiastics. I trust the world's best engineers are there, pushing the boundaries of atoms and quantum physics in order to get more computing power.
Ps. He also stressed that Intel only make investments on stable countries like Israel.. so I don't think any terrorist act won't change Intel's mind.
The instability in Israel comes from within, not from Gaza, and in that its not unlike many other Western countries right now.
i would love to see intel taking the lead again and Samsung putting some fire under tsmc ass too.
but things have been slipping
Merom (core/core-2), Sandy Bridge, Ivy Bridge - all products of Intel Israel.
So in a very real sense, Intel's Israel branch saved Intel at least once, maybe twice.
We need more cutting edge fabs and since the whole world is constantly undergoing de and re stabilization who cares where they go.