Intel downsizing in Israeli-occupied territories amid uncertain future presence
US chip giant Intel has initiated a significant downsizing campaign in Israeli-occupied territories, cutting jobs and operations at its primary manufacturing site in Kiryat Gat, reflecting broader global challenges for the company.
According to a report by Israel’s Globes business daily, Intel has reduced its workforce at the Kiryat Gat plant from around 5,000 employees in 2019 to 4,000 by the end of 2023.
Intel is undergoing a global restructuring following a significant decline in annual revenue—from $78 billion in 2020 to $53 billion in 2023—and a net loss of $18.7 billion over the same period.
The restructuring includes automating production lines at Intel’s Fab 28 plant in Israeli-occupied territories, leading to the dismissal of approximately 200 manufacturing workers and about 10% of its research and development staff.
Fab 28 had been a model of industrial performance since its establishment in 1996, with cumulative exports worth $86 billion, contributing 3–3.5% of Israel’s total annual exports.
Competition from Taiwan’s TSMC, which now dominates advanced chip production for clients such as Apple, Nvidia, and Amazon, has added to the pressure on Intel, the report said.
According to Globes, Intel has received an estimated $1.5 billion in grants over the years. More recently, the Israeli regime approved an additional $3.2 billion grant package for the construction of a new facility – Fab 38 – which has since been suspended due to the company’s retrenchment.
The future of Intel’s presence in the occupied Palestine remains unclear.
In Kiryat Gat, where many residents are directly or indirectly dependent on Intel, the atmosphere is tense. The suspension of construction on Fab 38 and scaling back of investments have raised concerns about potential long-term damage to the city’s economy.
Many employees, particularly the older staff, are now anxious about finding new jobs in a shrinking job market exacerbated by the Tel Aviv regime's war-mongering policy.
The total economic losses to Israel following the 12-day aggression against Iran are estimated at around $6 billion, with infrastructure hit particularly hard.
Amid the ongoing Israeli regime’s genocidal war on Palestinians in the besieged Gaza Strip, the locals expect a possible closure of the Kiryat Gat plants as Intel's new CEO rethinks the company's global footprint.
Israeli forces kill two Palestinians after alleged car-ramming attempt in West Bank
Hamas says will surrender arms to 'Palestinian state' only if Israeli occupation ends
Zelensky allies flee to Israeli-occupied territories as $100-million graft scandal erupts
‘Multipolar world finally emerges’: Trump’s ‘National Security Strategy’ sparks online buzz
Netanyahu says won’t quit politics even if granted pardon in corruption trial
Macron warns Beijing of tariffs in bid for EU-China trade deal
White House pushing for Sisi–Netanyahu summit: Report
Iran’s tax-to-GDP ratio at 6.4% in March 2025: SCI
VIDEO | Tulkarm horror: Israeli forces used 10-year-old girl as human shield
VIDEO | Press TV's news headlines
VIDEO | Rallies held across Australia in support of Palestinians
PressTV NEWSLETTER
now
This makes it easy to access the Press TV website
