The Israeli government announced that it had agreed to give Intel a $3.2 billion grant December 26 so the company could build a new $25 billion chip plant in the southern part of the country, the largest single investment ever made by Israel in an organization.

According to Reuters, construction has already begun at the Fab 38 plant, which is due to open in 2028 and operate through 2035.

In addition to the investment — equating to 12.8% of the total project — Intel has also promised to buy $16.6 billion of goods and services from Israeli suppliers over the next ten years.

The company said in a statement that the expansion plan for its Kiryat Gat site 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."

Since Pat Gelsinger took over as CEO in February 2021, Intel has invested billions to build factories across three continents in an effort to restore its dominance as a chip maker as the organization looks to keep pace with rivals like AMD, Samsung and NVIDIA.

Intel said it is also planning to spend over $33 billion to build two chip-making plants in Magdeburg, Germany as part of a multi-billion-dollar investment plan to bolster chip-making capabilities across Europe.