Intel Halts Progress on Israeli Semiconductor Manufacturing Plant
Construction on Intel’s $25 billion semiconductor manufacturing plant in Kiryat Gat, Israel, has been put on hold, as reported by Israeli media. The tech giant has instructed an infrastructure construction company to pause work on the project.
Intel, which currently employs around 12,000 workers in Israel, reaffirmed its commitment to the region despite the delay. The company cited various dependencies and business conditions as reasons for the postponement, emphasizing the need for responsible capital management.
The duration of the pause remains uncertain, with Intel hinting at financial considerations as a factor. The company has previously sought funding from private equity firms like Brookfield Asset Management and Apollo Global Management for its semiconductor projects.
This development comes shortly after Intel’s announcement of its plans to expand fab operations in Israel, with the project expected to receive substantial government subsidies. The decision to halt construction on the Israeli fab follows Intel’s shift in focus towards establishing itself as a leading foundry player globally, under the leadership of CEO Pat Gelsinger.
In addition to Israel, Intel has outlined significant investments in fab expansions and new facilities in various locations, including the United States and Europe. The tech giant’s strategic moves underscore its ambition to compete with industry leader TSMC and enhance its manufacturing capabilities by 2030.
The decision to pause work on the Israeli fab marks a shift in Intel’s approach, as the company had previously abandoned plans for a luxury R&D complex in Haifa. The funds allocated for the upscale project were redirected to support Intel’s broader foundry initiatives.
Overall, Intel’s temporary halt in construction highlights the complexities and challenges involved in large-scale semiconductor projects, reflecting the competitive dynamics of the global tech industry.