Intel, the world’s largest chipmaker, has put a halt to its new factory project in Israel, originally scheduled for completion by 2026, citing “business conditions and market dynamics.”
Reports from Israeli local media indicate that the US technology giant has suspended the construction of its planned $25 billion factory in Israel. The Finance Ministry is reportedly aware of Intel’s decision to cease the establishment of the plant in Israel.
Additionally, Intel’s suppliers have received notifications in recent days regarding the termination of contracts for the supply of necessary equipment and materials for the factory’s construction.
The completion timeline for Intel’s Israeli factory, initially set for 2026, is now uncertain.
Furthermore, it has been noted that several high-ranking officials at Intel Israel have transitioned to a factory being established in Ohio as part of a US initiative to boost chip production domestically. Israeli authorities have yet to provide an official statement on the matter.
Intel’s statement attributes the suspension of the Israeli factory project to “business conditions, market dynamics, and responsible capital management.”
This development underscores the impact of external factors on major global corporations and highlights the complexities involved in large-scale industrial projects. The decision to halt construction in Israel reflects Intel’s strategic considerations in response to evolving market conditions and operational priorities.
