Intel interrupts work on $25B Israel fab, citing need for 'responsible capital management'
Construction work on Intel's $25 billion semiconductor manufacturing plant in Kiryat Gat, Israel, has reportedly been postponed.
In a statement to The Register on Monday, the x86 giant reaffirmed its commitment to Israel, where the biz employs nearly 12,000 workers, explaining that projects of this scope have many dependencies that delay work. Which is a fancy way of saying, yes, the project's been paused.
"Israel continues to be one of our key global manufacturing and R&D sites and we remain fully committed to the region. As we've previously noted, the scope and pace of Intel's manufacturing expansion at our sites around the world depends heavily on various factors," the chip giant said.
"Managing large-scale projects, especially in our industry, often involves adapting to changing timelines. Our decisions are based on business conditions, market dynamics and responsible capital management."
It isn't clear how long the project will remain on hold. Intel's comment regarding capital management suggests it may be stalling while figuring out how to pay for the project. Intel has relied on private equity from the likes of Brookfield Asset Management and Apollo Global Management to help finance some of its fab projects.
