Intel to invest $ 600 million to develop Mobileye chip and R&D in Israel
The announcement was made during a day-long visit to Israel by Pat Gelsinger, CEO of Intel, as part of a European tour that included Germany and Belgium last week.
Intel is investing $ 400 million to transform its Mobileye unit, headquartered in Jerusalem, into an R&D campus for the development of autonomous car technologies.
An additional $ 200 million will be invested in building an R&D center, called IDC12, in the northern port city of Haifa, next to its current development center.
Intel said the “mega chip design” facility will have a capacity of 6,000 employees. Intel announced last week that it intends to recruit an additional 1,000 new employees in 2021 for its various R&D centers in Israel, while hiring another 400 employees for its artificial intelligence operations at Habana Labs.
Gelsinger, on his first European tour since taking charge of the company in February, in a statement released on Sunday predicted “a vibrant future for Intel and Israel for decades to come.”
In recent years, Intel has bought three Israeli tech companies – Mobileye in 2017 for more than $ 15 billion, artificial intelligence chipmaker Habana in 2019 for $ 2 billion and Moovit a year ago for $ 1 billion. dollars.
During his brief visit, Gelsinger met with the management of Intel and Mobileye and Israeli Prime Minister Benjamin Netanyahu.
In early 2019, Israel’s finance ministry said Intel would get a $ 1 billion grant to build an $ 11 billion chip factory, although at the time Intel did not confirm the amount. .
On Sunday, Intel said the investment will be $ 10 billion and the first phase of construction has started.
Its current Fab 28 plant at the company’s Kiryat Gat site produces 10 nanometer (nm) chips.
Intel has not disclosed whether the new plant will produce smaller chips, which may increase efficiency, but in March it announced it was building two 7nm chip factories in Arizona for some $ 20 billion.
Intel Israel’s exports hit a record $ 8 billion in 2020, up from $ 6.6 billion in 2019, accounting for 14 percent of total high-tech exports and 2 percent of Israel’s GDP.
Intel is Israel’s largest high-tech industry employer with nearly 14,000 workers.