Dream - The Israeli government and Intel have confirmed plans to build a $25 billion chip factory, or about Rp385 trillion (at an exchange rate of Rp15,411 per US$), in the southern part of the country. Intel has even employed 11,700 people in Israel and invested over $50 billion in the country over the past 50 years.

"Intel has chosen to approve an unprecedented investment of US$25 billion and establish its new factory here, in Israel," wrote Israeli Finance Minister Bezalel Smotrich in a post on X on Tuesday. "This investment promises high-quality job opportunities with high productivity in remote areas and will make a significant contribution to Israel's economic growth," he added."

Construction work has begun to prepare for the expansion of the location, and most of the buildings have been completed. This new factory will open in 2028 and operate until 2035. Intel has also confirmed the investment plan on Tuesday.

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"The growth of our manufacturing facility in Kiryat Gat is an incredible source of pride for our employees in Israel, and is a reflection of their unwavering commitment to excellence," said co-general manager of Intel Israel, Daniel Benatar, in a statement. "The support from the Israeli government will enable us to continue building on this excellence to ensure that Israel remains a global center for technology and semiconductor talent," he added.

Intel said that the expansion plan for the Kiryat Gat site will help enhance its ability to acquire materials and chips worldwide. Including Kiryat Gat, Intel's most advanced manufacturing facility, the company has four development and production locations in Israel.

The Israeli government will provide a grant of US$3.2 billion for the expansion of the Kiryat Gat factory, which will be distributed over several years, as reported by Israeli media. Intel has committed to purchasing goods and services worth 60 billion shekels (US$16.6 billion) from Israeli suppliers over the next decade, as reported by Reuters.