Intel to Expand Manufacturing Factory in Israel as Part of Global Development Push

The company announced that it will expand its factory in Kiryat Gat along with other site expansions in Oregan and Ireland

Sagi Cohen
Send in e-mailSend in e-mail
FILE Photo: The Intel factor in Israel.
FILE Photo: The Intel factor in Israel. Credit: Intel Israel
Sagi Cohen

Intel plans to expand production at its microchip factory in Kiryat Gat, the company announced Monday evening.

“We are now in the early planning phase for manufacturing site expansions in Oregon, Ireland and Israel, with multi-year construction activities expected to begin in 2019,” the company said.

It is planning to work on permits with local governments over the next few months, it said. Expansions will take places in stages, it added.

The company declined to elaborate on the extent and implications of the expansions. However, it stated that its plans include creating new space at the factory in order to enable production of its future products.

It declined to say what these future products are.

The Kiryat Gat factory used to produce its 22-nanometer technology. In 2014 Intel decided to invest $6 billion in improving the factory in order to start producing its new 10-nanometer technology, which enables smaller microchips.

Earlier this year, it decided to invest another $5 billion in order to further increase its production capacity in Israel.

In July, Economy Minister Eli Cohen said Intel was considering investing another $9 billion in Israel. The company responded at the time that it had no such concrete plans. It’s not clear whether the current announcement is related to Cohen’s July statement.

Meanwhile, Intel has repeatedly delayed the launch of its 10-nanometer products. They are expected to hit the market only next year.