Full coverage· Economy· Updated 9 Aug, 13:29

Israel Redirects Nearly $1 Billion from Intel Grant to Urgent Defense Budget Needs

Israel redirected nearly 1 billion shekels from an unused Intel grant to urgent defense budget needs after Intel froze its Kiryat Gat factory expansion amid a global financial crisis. The government canceled future grant payments pending project resumption.

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Israel Redirects Nearly $1 Billion from Intel Grant to Urgent Defense Budget Needs — Illustration by baba

What happened

01Israel redirected about 1 billion shekels from Intel's unused grant to urgent defense needs.
02Intel committed $25 billion to expand its Kiryat Gat factory under a 2023 agreement with Israel.
03The government agreed to a $3.2 billion grant, paid in stages based on project milestones.
04Intel froze construction in June 2024 due to a global financial crisis affecting its operations.
05Israel canceled the 2025 grant payment of about 1.3 billion shekels following the freeze.
06Future grant payments depend on resuming full construction and investment activities.