Intel CEO Pat Kissinger paid a one-day visit to Israel on Sunday to inspect the factory facilities under construction. He announced a US$600 million investment plan in Israel to significantly expand the local R&D department and increase production capacity.
Intel will invest US$400 million in its subsidiary Mobileye for the research and development of autonomous driving technology. The company is headquartered in Jerusalem and was acquired by Intel at a high price of US$15.3 billion in 2017. In the future, it will develop purely driverless delivery vehicles.
Kissinger said that the last time he came to Israel was 40 years ago, and it was great to see the Israeli department grow from 4 employees at the beginning to more than 14,000 employees today. Intel’s Israel department is the epitome of this global company, where a lot of research and development and innovation has been carried out.
Prior to Kissinger’s visit to Israel, Intel also said last week that it would invest another 200 million US dollars to build a new factory for the manufacture of next-generation chips. In addition, Intel also said that it will recruit about 1,000 people locally this year.
Intel acquired chip manufacturer Habana Labs for US$2 billion in 2019 and acquired the intelligent transportation company Moovit for US$900 million in 2020.
Intel said on Sunday that the first phase of the expansion of its Kiryat Gat factory has begun and that it will use the 10nm process to produce chips in the future. The company announced in 2019 that it would invest $10 billion in this plant to expand production.
Kissinger also said, “We continue to invest in Israel, expand R&D facilities, and improve manufacturing capabilities. Together with the acquisition of the world’s leading providers of autonomous driving solutions, Mobileye, Moovit, and Habana Labs, this will enable Intel in the next few decades. The development in Israel is full of vitality and hope.” In addition, he also said that Mobileye is an important part of Intel’s future strategy and business.