JERUSALEM (Reuters) – Intel Corporation (NASDAQ:) is suspending plans to build a $25 billion plant in Israel, Israeli financial news site Calcalist said Monday in a report that the chipmaker neither confirmed nor denied.
The US company, when asked about the report, referred to the need to adapt large projects to changing deadlines, without directly referring to the project.
“Israel continues to be one of our key global manufacturing and R&D centers, and we remain fully committed to the region,” Intel said in a statement.
“Managing large-scale projects, especially in our industry, often involves adapting to changing deadlines. Our decisions are based on business conditions, market dynamics and responsible capital management,” the statement said.
In December, the Israeli government agreed to give Intel a $3.2 billion grant to build a $25 billion chip plant in southern Israel.
Intel previously said the plant proposed for its Kiryat Gat site, where it has an existing chip plant, was “an important part of Intel’s efforts to build a more resilient global supply chain” along with the company’s investments in Europe and the United States.
Intel operates four development and manufacturing sites in Israel, including the Fab 28 manufacturing plant in Kiryat Gat. The plant produces Intel 7 technology, or 10-nanometer chips.
The planned Fab 38 plant was to open in 2028 and operate until 2035.
Intel employs about 12,000 people in Israel.