Intel Corporation (NASDAQ:INTC) has received a $3.2 billion grant from the government of Israel to help fund a $25 billion chip factory in the country, according to an announcement Tuesday.
The plant represents the largest investment to date by a company in Israel, according to a statement.
Construction is expected to begin near the city of Kiryat Gat, which is located roughly 26 miles from Gaza, where the Israeli military has recently expanded its ground offensive against Hamas, according to reports.
The facility is an “important part of Intel’s efforts to foster a more resilient global supply chain, alongside the company’s ongoing and planned manufacturing investments in Europe and the United States,” Intel said in a statement.
Israel’s finance and economy ministries said that the Intel plant will provide economic benefits to the country worth significantly more than its grant to Intel.
Meanwhile, Intel also committed to purchase $16.6 billion in goods and services from Israeli companies over the next decade. The plant itself is expected to create hundreds of thousands of jobs and operate from 2028 through 2035.
The company currently operates four development and production sites in Israel, where it first established a presence in 1974.
Shares of Intel jumped more than 5% Tuesday to $50.50.