A few 12 months in the past, Intel instructed the contractors constructing its new manufacturing plant in Kiryat Gat (Fab 38) that it was freezing development enlargement and specializing in constructing the primary and authentic a part of the plant. This meant that of the 2 “clear rooms,” – sterile areas the place the corporate’s most subtle chips are manufactured, which have been designed within the south, just one can be operational within the coming years, whereas the destiny of the second clear room is unknown. The unique plan to construct a chip manufacturing facility at a value of $25 billion, $3 billion of which was authorities assist, is at the moment not being applied.
The whole variety of workers who have been speculated to proceed working on the website till no less than 2028, estimated within the 1000’s, has been shrinking because of non-renewal of contracts with suppliers, in addition to the completion of among the tasks that have been because of finish anyway.
“Globes” has discovered that in parallel to layoffs on the present Intel plant in Kiryat Gat (Fab 28), estimated at 200-300 workers, the variety of contractor employees employed within the development of the brand new plant has dropped for the reason that peak in 2024 from 5,500 to about 2,000 employees right now.
These are employees employed by constructing firms that received contracts with Intel – some have been transferred to different tasks, however some have been fired because of failure to signal continuation contracts that the businesses anticipated as a part of the mission’s enlargement. The state authorised development and contracting firms with about 3,000 work visas for international employees from international locations comparable to India, Sri Lanka and Thailand particularly for Intel’s Fab 38 mission, and now – with development of 1 half nearing completion and development of the second half on maintain – they’re returning to their international locations of origin two to 3 years sooner than the unique plan.
Israeli employees have additionally been fired as a result of transfer. Among the many firms affected by Intel’s determination to not renew contracts or to chorus from signing new contracts for the development of the second a part of the plant are: Afcon, Elmor, Hemo Aharon, Pentagon, Katz Group, BCT Piping, Carmel Insulation and Lesico.
The brand new chip isn’t taking off
The Fab 38 plant is designed as a fancy with two separate vegetation containing a clear room for manufacturing chips, primarily for set up in laptops and servers. Whereas the development of the primary plant has been accomplished and the cooling, energy and piping programs have been put in, it’s nonetheless ready to be linked to manufacturing machines – a stage that’s at the moment delayed as Intel remains to be rethinking its manufacturing processes and looking for key clients who will comply with manufacture in its factories. The development of the concrete shell and machine ceiling of the second manufacturing facility within the complicated is at the moment full, however no new agreements have been signed to suit the manufacturing facility with electromechanical programs, air con and piping – a problem that has been frozen for greater than a 12 months after Intel’s authentic determination.
RELATED ARTICLES
Nonetheless, it shouldn’t be concluded that Intel’s new manufacturing facility will stand empty. The primary a part of the manufacturing facility, through which an estimated $10 billion has been invested since 2019, will finally be operational, even when Intel decides to promote the property to a different chip producer. Intel has beforehand spoken about their manufacturing areas and stated that they’ll be capable to use them in time frames starting from 18 months to 2 years, relying on buyer demand. Past Intel’s monetary disaster, the corporate has encountered one other impediment in current weeks after it grew to become clear that there isn’t any demand for its new and promising 18A chip, and the corporate is now contemplating betting on its subsequent technology 14A chip, which would require a rethinking of all manufacturing programs within the new vegetation.
Intel responded: “The mission to ascertain the brand new plant in Kiryat Gat is a fancy and long-term mega mission, and its tempo of progress is adjusted to enterprise developments and market circumstances. Intel stays absolutely dedicated to its operations and strategic presence in Israel.”
Revealed by Globes, Israel enterprise information – en.globes.co.il – on July 10, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
