Israeli local media on Tuesday reported that the U.S. technology giant Intel is halting the expansion of a major factory project in Israel, which was going to pump an extra $15 billion toward a chip plant.
According to the Israeli financial daily Calcalist, the country's finance ministry is aware of the company's decision to halt the establishment of the plant in Israel.
It added that Intel's suppliers received notices in the past days of the cancellation of contracts for supplying equipment and materials required to establish the factory.
The completion of Intel's factory in Israel was expected by 2026, the daily added.
It also said, "Several senior officials at Intel Israel have transferred their jobs to a factory that Intel is establishing in Ohio" as part of an American program to produce chips in factories in the U.S.
The Israeli authorities have yet to comment officially on the issue.
Solicited by Agence France-Presse (AFP), Intel gave no reason for the pause for the next phase and did not link to the ongoing war in Gaza.
Calcalist also quoted a statement by Intel that attributed the issue to "business conditions, market dynamics and responsible capital management."
The semiconductor giant has been present in Israel for 50 years, with the opening of a research center in Haifa.
During the 2010s, Intel became the leading employer in Israel's thriving tech sector, according to the company's website.
In 2017, the American company paid $15.3 billion to take control of Israeli start-up Mobileye, specializing in assistance and autonomous driving.
Intel floated part of Mobileye's capital on the New York Stock Exchange in October 2022 but retained control of the company.
