Intel halts planned expansion of Kiryat Gat factory project

Intel is halting the expansion of a major factory project in Israel, which was going to pump an extra $15 billion toward a chip plant.

The chip giant in December said it was going to expand an ongoing $10 billion plan at the Kiryat Gat site, in the south of the country, currently under construction.

Solicited by AFP, Intel gives no reason for the pause of the next phase and makes no link to the ongoing conflict with Hamas in Gaza.

“Israel continues to be one of our key global manufacturing and R&D sites and we remain fully committed to the region,” the company says in a statement.

It adds that “managing large-scale projects, especially in our industry, often involves adapting to changing timelines.”

“Decisions are based on business conditions, market dynamics and responsible capital management.”

Israel is Intel’s third-largest country of operation by asset size, according to its annual report, after the United States and Ireland.

The semiconductor giant has been present in Israel for fifty years, with the opening of a research center in Haifa.