Treasury cancels Intel grant

The Israeli Ministry of Finance has canceled a NIS 1.3 billion grant to Intel for expanding its Kiryat Gat factory, two years after construction was frozen due to Intel's cash flow issues and regional conflicts. A NIS 1.06 billion grant for 2026 remains pending.

The Israeli Ministry of Finance has cancelled a NIS 1.3 billion grant to Intel for the expansion of its Kiryat Gat chip foundry, two years after construction was frozen. The freeze was attributed to Intel's cash flow difficulties and recurring wars in the Middle East. The grant was due for work in 2025 that did not occur. A NIS 1.06 billion grant planned for end-2026 remains in place, in case Intel resumes investment. In 2023, the government committed NIS 11.1 billion in grants for a NIS 89 billion investment. Intel's factory in Ireland has become the beneficiary of new investment, while the Kiryat Gat facility uses older 10nm technology. Intel stated the expansion program is under review to align with customer demand.