Intel Corp
Intel highlighted the need to adapt large-scale endeavors to changing timelines, without directly referring to the project, according to a report from Reuters.
"Israel continues to be one of our key global manufacturing and R&D sites and we remain fully committed to the region," the report cited Intel.
The company elaborated on the challenges of managing significant projects, especially in the semiconductor industry, which requires flexibility in planning due to fluctuating business climates and market dynamics.
"Our decisions are based on business conditions, market dynamics and responsible capital management," the statement added.
In December, the Israeli government agreed to provide Intel with a substantial $3.2 billion incentive to facilitate the construction of the massive chip manufacturing plant in the southern part of the country.
Intel had previously described the proposed facility at its Kiryat Gat location, which already houses an operational chip factory, as an integral component of its strategy to enhance the resilience of the global supply chain.
The existing Kiryat Gat facility, known as Fab 28, is instrumental in producing Intel 7 technology or 10-nanometer chips.
The new Fab 38 plant, initially scheduled to open in 2028 and continue operations through 2035, is poised to further bolster Intel's manufacturing capacity.
Intel is a major employer in Israel, with nearly 12,000 staff members across its four development and production sites in the country.
Intel stock has lost over 6% in the last 12 months. Investors can gain access to the stock via First Trust Nasdaq Semiconductor ETF
Price Action: INTC shares closed higher by 0.55% at $30.91 on Monday.
