The Israeli government decided on Tuesday to offer Intel $3.2 billion (approximately Rs. 26,600 crore) in funding for a new $25 billion (about Rs. 2,91,100 crore) chip facility it wants to construct in southern Israel.
The revelation comes as Israel remained at odds with the Palestinian terrorist organization Hamas after the October 7 Hamas assault on Israel.
The Kiryat Gat expansion is an “important part of Intel’s efforts to foster a more resilient global supply chain, alongside the company’s ongoing and planned manufacturing investments in Europe and the United States,” according to a statement from Intel. 
In addition to the grant, which accounts for 12.8 percent of the total investment, the chipmaker has committed to purchasing 60 billion shekels (roughly Rs. 1,37,500 crore) in goods and services from Israeli suppliers over the next decade, with the new facility expected to create thousands of jobs.
Intel employs about 12,000 people in Israel and has four research and production locations, including a manufacturing factory in Kiryat Gat.
Prime Minister Benjamin Netanyahu said in June that Intel will construct a new $25 billion (approximately Rs. 2,91,100 crore) chip facility in Israel, although Intel has yet to confirm the investment.
Nonetheless, Intel said that work on expanding the facility, including clean rooms and support facilities, is already underway. According to the report, a large section of the structures, including pile casting and the first floors, have been constructed.
