Key Takeaways
- The Israeli government has given Intel $3.2 billion in incentives to expand its chip manufacturing in the country.
- The company plans to construct a $25 billion plant on its site in Kiryat Gat.
- Intel shares jumped to their highest level since March 2022.
Intel (INTC) shares jumped Tuesday after Israel’s government granted the semiconductor maker $3.2 billion in incentives for a $25 billion chip manufacturing plant.
The company is looking to expand its operations on its site in Kiryat Gat, where it already has a chip factory. The move is an important part of Intel’s efforts to create a more resilient global supply chain and is in addition to ongoing and planned manufacturing investments in the U.S. and Europe, the company said.
Vice President Daniel Benatar said the support from Jerusalem ensures that Israel remains a global center of semiconductor technology and talent.
Israel’s Finance Minister Bezalel Smotrich wrote on X (formerly Twitter) that the investment “will promote quality employment with high productivity in the peripheral settlements and will affect the growth of the Israeli economy.“
The agreement was originally announced by Prime Minister Benjamin Netanyahu in June, who called it the largest-ever foreign investment in Israel’s history.
The news sent shares of Intel to their highest level since March 2022 and shares were up nearly 4.7% Tuesday at 11:30 a.m. Eastern Time.
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