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US tech giant Intel halts expansion plan for $25 billion Israeli chip factory | Company News
Intel gave no specific reason for the decision and made no connection to the ongoing war in Gaza, in which more than 37,000 Palestinians have been killed.
Intel chip factory under construction located in Kiryat Gat, southern Israel. (Photo: Intel)Nisha Anand New Delhi-based American multinational corporation Information has decided to suspend plans to expand a chip factory in Israel, which would represent an additional investment of US$15 billion, Israeli financial news website Calcalist reported on Monday.
The company did not provide any specific reason for the decision amid growing speculation about whether it was linked to the ongoing war in Gaza.
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“Israel continues to be one of our key global production and R&D locations and we remain fully committed to the region,” the company said in a statement.
In December, the technology giant announced that it would increase its investment in the chip factory, located in Kiryat Gat, in southern Israel. The plant is currently under construction and an additional investment of US$15 billion would mean increasing the final cost to US$25 billion.
This would have resulted in Intel securing a $3.2 billion grant from the Israeli government. The facility is expected to come into operation in 2028.
When the deal was reached, Israeli Finance Minister Betzalel Smotrich praised the investment, noting that it came at a time when the country was “facing a war.”
“Such an investment is an expression of confidence in the State of Israel and the Israeli economy,” Smotrich said, as quoted by the media.
US companies face boycott calls amid Gaza war
The conflict between Israel and Hamas in Gaza, which began on October 7, has attracted widespread international attention and criticism. Israel’s ground operation in Gaza since the war has resulted in the deaths of 37,202 Palestinians and more than 80,000 injuries.
Critics have accused Israel of committing genocide against Palestinians, prompting peace activists to launch boycott campaigns against US companies that conduct business in the West Asian country or publicly support the Israeli military.
The US, Israel’s closest ally, has supported its offensive by providing aid and weapons, increasing calls for a boycott against these companies to create pressure on the US economy.