Intel may get $380 million subsidy for Israeli fab expansion

Word is going around that Intel may receive the largest grant ever awarded to a non-Israeli firm for its expansion plans in the country. The chip giant has long been one of the major tech firms in Israel, it has production capacity, assembly/test sites and R&D facilities in the country.

The expansion involves a $5 billion investment in the existing facility in the Israeli town of Kiryat Gat, to upgrade it for 10nm production and with later plans for a transition to 7nm. Calcalist writes Intel is set to receive a $380 million grant for this project:

Intel is set to receive a $380 million grant from the Israeli government to support its plans of expanding chip manufacturing in the country, one person familiar with the matter said in an interview with Calcalist, speaking on condition of anonymity. If approved, the grant will be the largest ever awarded by the Israeli government to a non-Israeli company for a single investment.

Confidential sources familiar with the matter claim the Israeli government has approved the grant on a conditional basis, but Intel still needs to submit a more detailed plan.