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Intel to spend $6 billion on 10nm fab in Israel

The Israeli government announced this week that it has approved a plan submitted by Intel Corp. regarding upgrading its fab in Kiryat Gat. Under the terms of the plan the chip giant intends to significantly modernize its semiconductor manufacturing facility in order to build chips using 10nm process technology there.

Intel plans to spend as much as $6 billion (€4.67 billion, £3.66) on the upgrades necessary to make chips using the forthcoming 10nm process technology in Kiryat Gat. The government of Israel will grant Intel $300 million over five years in subsidies and the world’s largest chip designer will be eligible to pay a corporate tax rate of only 5 per cent for a 10-year period, reports Reuters news-agency.

“Intel's investment is a strategic asset for Israel's industry,” said Yair Lapid, the finance minister of Israel. “This is the biggest investment by a foreign company ever in Israel and is further proof that Israel is at the forefront of technology and innovation.”


At present Intel’s fab 28 in Kiryat Gat produces various products using 32nm process technology.

The chip giant is expected to make the official announcements regarding the upgrade of the fab in the coming days.

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KitGuru Says: The fact that Intel has made the decision to invest in Fab 28 indicates that the company is more confident about the future than it was earlier this year, when it announced delays in deployments of new fabs in the U.S.

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