Intel to build a factory in Israel

US semiconductor giant Intel Corporation has agreed to build a new plant in Israel to diversify its manufacturing sources, according to Bloomberg.

A tentative deal for the new plant was announced by the Israeli Ministry of Finance and Prime Minister Benjamin Netanyahu, and Intel confirmed its plans to expand production capacity in Israel, where the company already has a presence.

The new plant will produce wafers, as Israel is already one of Intel's four main suppliers in this area.

The company is looking to regain its technology leadership in chip manufacturing after being ceded by rivals Nvidia and Taiwan Semiconductor Manufacturing Co.

Prime Minister Netanyahu estimated the deal to be worth $25 billion, including a $10 billion previous investment announced in 2021.

The construction of the new plant will create thousands of jobs in the country, adding to the already existing nearly 12,000 jobs. The new plant, which will be located in Kiryat Gat, south of Tel Aviv, is scheduled to be operational by 2027.