Intel Corporation, the largest publicly traded semiconductor chip producer in the US, is expanding its manufacturing empire in Europe. The American multinational has secured a $3.2 billion grant from the Israeli government to set up a brand new $25 billion chip fabrication plant in Israel.
Dubbed Fab 38, the new facility is anticipated to be ten times larger than Intel's existing plant in Kiryat Gat. It will also be fitted with state-of-the-art Extreme Ultraviolet (EUV) lithography equipment, which is crucial for the production of advanced semiconductor chips. Costing up to $200 million each, the EUV machines facilitate the carving of transistors into silicon wafers with laser light beams.
With this technology, chip makers can produce smaller, more efficient chips, something Intel already employs in its Leixlip, Ireland, fab for 7nm CPUs. Intel's investment in the new Israel plant is part of its broader strategy to roll out several EUV-powered processes in the coming years. With any luck, this will help it bridge the gap with its greatest rival, Taiwan Semiconductor Manufacturing Company (TSMC).
Intel has been present in Israel for almost 50 years now. The chip manufacturer already has three plants, including Intel Haifa, Intel Petah Tikvah, and Intel Jerusalem.
Intel Haifa serves as a hardware and software development center for processors and AI; Intel Petah Tikvah houses the communication and AI solutions development center; and Intel Jerusalem focuses on software and cybersecurity developments. The latter also serves as the headquarters for Mobileye, the autonomous driving technology company that was acquired by Intel in 2017.
