Intel Corp.’s planned investments in Israel will “significantly extend” its research and development facilities locally and boost manufacturing capacity, the US tech giant said on Sunday, as its CEO Pat Gelsinger paid the country a one-day visit.
The company also said it is investing $400 million in Mobileye, a Jerusalem-based maker of self-driving technologies, for its new research and development campus. Intel acquired Mobileye in 2017 for $15.3 billion.
“I’ve been visiting Israel for four decades and it’s been amazing to see our growth from just four employees in 1974 to over 14,000 employees now. Intel Israel is a microcosm of our global company with investments and innovation across research, development and manufacturing at scale in one location,” Gelsinger said in the statement.
Ahead of Gelsinger’s visit, Intel said last week it will be setting up a $200 million campus in Israel to develop the “chips of the future.” The company also said it intends to recruit some 1,000 new employees locally this year.
The US firm bought chip maker Habana Labs for $2 billion in 2019, and the smart-transit startup Moovit for $900 million in May last year.
The company has three major development centers located in Haifa, Petah Tikva and Jerusalem, and an advanced chip manufacturing plant in Kiryat Gat.
Intel said Sunday that a first stage of construction for the expansion of its Kiryat Gat factory has started. The US firm, which is manufacturing chips with advanced 10nm technology at the plant, said in 2019 it plans to expand production at the plant with a $10 billion investment.
“Our continued investment to extend our existing R&D facilities and increase our manufacturing capacity in Israel, coupled with our acquisitions of Mobileye, the global leader in driving assistance and self-driving solutions, Moovit smart-transit, and Habana Labs for leadership AI, promise a vibrant future for Intel and Israel for decades to come,” Gelsinger said in the statement.
“Mobileye is a major growth business that’s deemed to be a key part of Intel’s future,” the company said in the statement.