The Finance Committee in Israeli parliament this week approved a grant to Intel to expand its Fab 28 production facility in Kiryat Gat. The decision confirms that Intel’s expansion of its factory had been approved by local authorities and the company may proceed with the project.

Under the terms of its investment plan proposed in May 2018, Intel intends to invest $5 billion (NIS 18 billion) in its Kiryat Gat ventures until 2020. The Knesset Finance Committee approved a plan to provide Intel a grant of $185.5 million (NIS 700 million) on the condition that it will hire 250 new employees and spend $560 (NIS 2.1 billion) with local vendors and retailers per annum. The grant was awarded as a part of changes for Israeli national budget for 2018, so the company has already received the money or is about to.

Intel has been expanding its Fab 28 for years now. In 2013 the company acquired Micron’s 200-mm fab located adjacent to Intel’s Fab 28 (in fact, the facility was initially called Fab 18 and belonged to Intel prior to 2008) and announced plans to convert it to 300 mm wafers, essentially making it a part of its Fab 28 complex. In 2014 the semiconductor giant announced a $6 billion investment plan to prepare its Fab 28 to produce CPUs using its 10 nm process technology. The CPU maker got $450 million (NIS 1.7 billion) in state grands from Israel as a part of this project and reduced corporate tax rate of 5% (vs. standard 23%). The company’s new Fab 28 production lines that went online in late 2016 are currently using Intel's 14nm process and it is unclear whether the facility is ready for 10 nm or not.

The new $5 billion plan for Fab 28 is a part of Intel’s recently announced intention to expand manufacturing capacities globally. Under the terms of this plan, Intel will equip its Fab 42 for its 7 nm process technology, expand and upgrade its fab in Ireland, and add fab space to its Oregon plant.

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Sources: CalcalisTech, Times of Israel, Haaretz/TechNation
Image Source: CalcalisTech

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  • sharath.naik - Friday, December 28, 2018 - link

    Why in Israel? an not in US? isn't intel a US company?
  • jeremyshaw - Friday, December 28, 2018 - link

    It's already expanding in the US, lol. Either way, they have a large R&D office in Israel that likely benefits from having close access to a fab. As TSMC learned, connecting those things to the internet is beyond stupid (before anyone claims otherwise, multiple TSMC fabs across the island were affected. Either TSMC stupidly mass deployed an untested "3rd party vendor upgrade" across all of its fabs at once, or they were networked together across the internet. Since even I don't believe TSMC was stupid enough to do the former, it really only leaves the latter).
  • thesavvymage - Friday, December 28, 2018 - link

    Can't have everything in one place when youre a company as big as Intel, you need to diversify for risk. They also have multiple fabs in the USA (Oregon, Arizona) and Ireland.
  • HStewart - Friday, December 28, 2018 - link

    It could have some of latest 14nm - but probably meant for production of 10nm production.
    Also keep in mind Intel sells products other than CPU's
  • HStewart - Friday, December 28, 2018 - link

    That was for down below, well Israel has a lot of smart people in there - and it better than China or Korea
  • sheh - Friday, December 28, 2018 - link

    A similar discussion earlier this month:
  • shompa - Tuesday, January 1, 2019 - link

    1) The home country/ethnic background if Intel is Israeli. If you look at history, they are usually more loyal to their home country than the USA/or any of the other 209 countries. 2) Intel's CEO said Intel is an Isreali company. source The funny thing is that its the same fab that failed at 10nm so they are rewarded för failure.
  • shabby - Friday, December 28, 2018 - link

    This fab will build 14nm+++?
  • eastcoast_pete - Saturday, January 5, 2019 - link

    Or, with a little help from Intel's marketing people, 14nm++++++ (and counting). Basically, another "+" for every year that EUV will be late.
  • jgraham11 - Friday, December 28, 2018 - link

    Funny this investment is ultimately being paid for by the US/Canadian/other countries who give Israel foreign aid in the Billions of dollars per year... Just so that they can tax Intel less it would seem...

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