"Dream - The Israeli government and Intel confirmed plans to build a chip factory worth US$25 billion or around Rp385 trillion (exchange rate Rp15,411 per US$) in the southern part of the country. Intel has even employed 11,700 people in Israel and invested more than US$50 billion in the country over the last 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 site, and most of the buildings have been completed. This new factory will be opened in 2028 and will operate until 2035. Intel has also confirmed the investment plans on Tuesday.

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

Intel says that the expansion plan for the Kiryat Gat site will help enhance its ability to source 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, to be distributed over several years, Israeli media reported. 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.