Intel cancels orders related to new wafer fab in Israel

TapTechNews June 11 news, according to Israeli media Calcalist, some suppliers have recently received notices from Intel cancelling equipment and material orders related to the new wafer fab in Israel.

Israeli Ministry of Finance officials in charge of related affairs told the media that Intel's overall investment plan in Israel remains unchanged, and the order cancellation is a normal schedule change.

Intel reached an agreement with the Israeli government in December 2023 and announced an investment of US$25 billion (TapTechNews note: currently about 181.416 billion yuan) to build a new Fab38 wafer fab in Kiryat Gat, Israel.

Intel then expected that this new factory adjacent to the existing Intel7 process wafer fab Fab28 would go online and be operational in 2028.

Intel promised to purchase products and services worth 60 billion shekels (currently about 116.128 billion yuan) from Israeli suppliers in the next ten years, and the government will provide Intel with a subsidy of US$3.2 billion (currently about 23.221 billion yuan).

Intel said in a statement:

Israel remains one of our important global production and R & D bases, and we will continue to fully invest in the development of this region.

As we pointed out before, the scope and speed of production expansion in Intel's global production bases depend to a large extent on various factors.

Managing large projects, especially large projects in our industry, often requires adapting to changing schedules. Our decisions are based on business conditions, market dynamics, and responsible capital management.