Intel to invest $11 Billion in production facilities in Israel

29 January, 2019

Intel is Planning a Multiyear Manufacturing Site Expansion Projects in Oregon, Ireland and Israel, to address the needs of its new non-PC markets

Intel today announced it will submit a business plan to the Government of Israel for continued investment in the company’s Kiryat Gat manufacturing site. The Finance Minister Moshe Kahlon revieled yesterday in his twitter account, that the plan includes $11 billion investment in Intel’s production facilities in Israel. Yaniv Gary, VP, Intel Israel GM, said “Our excellent partnership with the State of Israel is at the foundation of the business plan we will submit.”

Today, Intel employs 11,700 people across Israel in addition to 1,100 employees of Mobileye, an Intel company. Some 60% of the employees work in development and the balance in manufacturing. Intel also said that in 2018 it has also made $1.7 billion of local procurement in Israel and its exports from Israel totaled $4 billion.

Details of the project, including schedules, costs and technologies are not being disclosed at this time. The current announcement follows the post of Ann Kelleher, Intel’s senior vice president and general manager of Manufacturing and Operations from December 2018, saying that Intel is Planning a Multiyear Manufacturing Site Expansion Projects in Oregon, Ireland and Israel.

60% Shorter Delivery Time

She explained that Intel is transforming from a PC-centric company to a data-centric company:”As a result, we are now competing to win in an estimated $300 billion total addressable market for silicon — making a more diverse array of products at ever-higher volumes for a broader set of customers.”

Having additional fab space at-the-ready will help us respond more quickly to upticks in the market and to reduce our time to increased supply by up to roughly 60 percent. In addition, we will continue our selective use of foundries for certain technologies where it makes sense for the business.”

According to IC Insights, Intel Corp. capital spending in 2018 reached US$15.5 billion in 2018, up 32% from US$11.78 billion in 2017. Intel was the number one ranked semiconductor supplier from 1993 until 1Q17, when it lostlost its lead spot to Samsung.

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