Intel invests $550 million to upgrade Kiryat Gat fab to 10nm

FUD Zilla picked up news that Intel's Fab 28 in Kiryat Gat, Israel will receive a further $550 million investment. The fab currently manufactures 22nm chips for Intel and after the upgrade is done it will likely be one of the chip giant's first 10nm fabs.

The fab was passed over for an upgrade to 14nm as this investment went to Ireland, but Israel is currently in a better position to offer incentives and subsidies as Ireland's business-friendly tax policies are being scrutinized by the EU.

Israeli Ministry of Economy official Ziva Eger said the investment will help create thousands of jobs and reinforce the country’s standing as a world leader in technology.

“The agreement signed today between the Industrial Cooperation Authority and Intel is another expression of Intel’s contribution by way of its purchase of equipment, new technologies and Israeli products developed together with Intel,” said CEO of Intel Israel Maxine Fassberg.

Fab 28 currently churns out 22nm silicon for Intel. The fab was passed over for the 14nm upgrade. A source familiar with the matter told us that Israel competes with Ireland for every node upgrade.

The first 10nm processors may hit the market in 2016.