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Released June 14, 2024 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Chip giant Intel Corporation (NASDAQ:INTC) (Santa Clara, California) has paused development of a new $25 billion semiconductor plant in Israel according to reports from Israeli financial news outlet, Calcalist.
Cited by Reuters, the report said that the company had asked the infrastructure construction firm to pause work on the project. The company has plans to build the new Fab 38 facility on the site of its existing Fab 28 plant in Kiryat Gat in southern Israel, slightly more than 40 kilometers from war-torn Gaza. No reason was given for the decision but, while Intel neither confirmed nor denied the report, it did say that projects of this scale need to adapt to changing timelines.
In a statement, a company spokesperson said: "Israel continues to be one of our key global manufacturing and R&D sites and we remain fully committed to the region. As we've previously noted, the scope and pace of Intel's manufacturing expansion at our sites around the world depends heavily on various factors. Managing large-scale projects, especially in our industry, often involves adapting to changing timelines. Our decisions are based on business conditions, market dynamics and responsible capital management."
At the end of last year, plans for Fab 38 were cemented with the Israeli government after it received a generous financial support package of $3.2 billion to build the $25 billion plant. The investment was called the largest ever made by a company in the country. The new plant will create thousands of new jobs, and the chipmaker has agreed to $16 billion worth of goods and services from Israeli suppliers over the coming decade.
The company celebrated 50 years of operations for Intel Israel earlier this year. It employs about 11,000 employees across four locations: Kiryat Gat (manufactures processors, 5G and AI products with Intel 7 technology), Haifa (a key hardware and software development center for processors and AI), Petah Tikvah (a communication and AI solutions development center), Jerusalem (home to Mobileye's global development center for autonomous cars and a communications, software and cybersecurity development center).
The new plant is expected to use the latest High Numerical Aperture (High NA) Extreme Ultraviolet (EUV) lithography scanner technology to produce significantly smaller and denser processors. It is expected to be able to print features up to 1.7 times smaller than existing EUV tools. This will enable 2D feature scaling, resulting in up to 2.9 times more density, according to Intel.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Cited by Reuters, the report said that the company had asked the infrastructure construction firm to pause work on the project. The company has plans to build the new Fab 38 facility on the site of its existing Fab 28 plant in Kiryat Gat in southern Israel, slightly more than 40 kilometers from war-torn Gaza. No reason was given for the decision but, while Intel neither confirmed nor denied the report, it did say that projects of this scale need to adapt to changing timelines.
In a statement, a company spokesperson said: "Israel continues to be one of our key global manufacturing and R&D sites and we remain fully committed to the region. As we've previously noted, the scope and pace of Intel's manufacturing expansion at our sites around the world depends heavily on various factors. Managing large-scale projects, especially in our industry, often involves adapting to changing timelines. Our decisions are based on business conditions, market dynamics and responsible capital management."
At the end of last year, plans for Fab 38 were cemented with the Israeli government after it received a generous financial support package of $3.2 billion to build the $25 billion plant. The investment was called the largest ever made by a company in the country. The new plant will create thousands of new jobs, and the chipmaker has agreed to $16 billion worth of goods and services from Israeli suppliers over the coming decade.
The company celebrated 50 years of operations for Intel Israel earlier this year. It employs about 11,000 employees across four locations: Kiryat Gat (manufactures processors, 5G and AI products with Intel 7 technology), Haifa (a key hardware and software development center for processors and AI), Petah Tikvah (a communication and AI solutions development center), Jerusalem (home to Mobileye's global development center for autonomous cars and a communications, software and cybersecurity development center).
The new plant is expected to use the latest High Numerical Aperture (High NA) Extreme Ultraviolet (EUV) lithography scanner technology to produce significantly smaller and denser processors. It is expected to be able to print features up to 1.7 times smaller than existing EUV tools. This will enable 2D feature scaling, resulting in up to 2.9 times more density, according to Intel.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
