JERUSALEM (Reuters) – Intel Corp (NASDAQ:) is halting plans for a $25-billion manufacturing facility in Israel, Israeli monetary information web site Calcalist stated on Monday, in a report that the chipmaker didn’t verify or deny.
The U.S. firm, requested in regards to the report, cited the necessity to adapt massive tasks to altering timelines, with out immediately referring to the challenge.
“Israel continues to be one among our key international manufacturing and R&D websites and we stay totally dedicated to the area,” Intel stated in an announcement.
“Managing large-scale tasks, particularly in our business, usually entails adapting to altering timelines. Our choices are based mostly on enterprise circumstances, market dynamics and accountable capital administration,” it stated.
Israel’s authorities in December agreed to present Intel a $3.2-billion grant to construct the $25-billion chip plant in southern Israel.
Intel has beforehand stated that the manufacturing facility proposed for its Kiryat Gat web site, the place it has an present chip plant, was an “essential a part of Intel’s efforts to foster a extra resilient international provide chain” alongside the corporate’s investments in Europe and the US.
Intel operates 4 growth and manufacturing websites in Israel, together with its manufacturing plant in Kiryat Gat referred to as Fab 28. The manufacturing facility produces Intel 7 expertise, or 10-nanometer chips.
The deliberate Fab 38 plant was resulting from open in 2028 and function by 2035.
Intel employs almost 12,000 folks in Israel.