Image: Intel’s large chip factory in Kielgate, Israel. \Network image

[Ta Kung Pao News]According to AFP: US chip giant Intel halted its plan to expand a large chip factory in the southern Israeli city of Kiyeget on the 10th. The plan was to invest another $15 billion in the local chip factory. Intel said in December last year that it would increase investment in the $10 billion chip production project in Kiyeget. Israeli Prime Minister Netanyahu said at the time that the project, with a total investment of $25 billion (HK$195 billion), was the largest international investment in Israel’s history.

Intel did not provide a reason for suspending the next phase of expansion plans. Intel said in a statement that Israel remains one of its major global manufacturing and R&D bases, and “managing large projects, especially in our industry, often requires adapting to changing schedules.”

Intel has previously stated that building a factory in Kiyeget is an important part of “building a more resilient global supply chain.” The Israeli government announced in December last year that it would allocate $3.2 billion to Intel’s expansion project in Kiyeget. The factory was originally scheduled to open in 2028 and operate until 2035.

Israel is Intel’s third largest country in terms of assets, after the United States and Ireland. Intel employs nearly 12,000 people in Israel. These workers mainly work in three research centers in Haifa, Petah Tikva and Jerusalem, as well as a manufacturing center in Kiyeget.