The US-based chip giant Intel Corp is halting a $25 billion chip manufacturing project in Israel, Calcalist reported on 10 June.
The Israeli news agency writes that Intel’s decision to stop the building of the multibillion-dollar factory after “Intel’s suppliers received in recent days notice of the cancellation of contracts for the supply of equipment and materials required for the establishment of the company’s new factory.”
The plant was announced in December of last year and was expected to be built in Kiryat Gat, just shy of 60 kilometers from Tel Aviv.
The Calcalist report states Intel said in response that Israel continues to be one of the technology company’s “key global manufacturing and [research and development] sites, and we remain committed to the region.
“As mentioned previously, the scope and rate of expansion of Intel’s production at the company’s sites around the world depend on a number of changing factors,” Intel’s response read. “Managing a project of this magnitude, especially in our industry, usually involves schedule adjustments. Our decisions are based on business conditions, market dynamics, and responsible capital management.”
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