Intel on Monday announced plans to build a new fab in Israel that will cost $25 billion, the largest foreign investment that the country has ever seen. The manufacturing facility is set to come online in 2028, so it will use extreme ultraviolet (EUV) lithography, though it remains to be seen which process technologies it will support. Meanwhile, the company will get a $3.25 billion grant from the Israeli government to build the new fab, reports Reuters .

The upcoming Fab 38 will be located adjacent to Intel's existing fabs near Kiryat Gat, which is approximately 42 kilometers from the Gaza Strip. Intel expects the new fab to come online already in 2028 and operate until 2035. The new fab in Israel is a crucial element of Intel's strategy to diversify its supply chain and build a network of leading-edge fabs across all continents and countries, including the U.S., Europe, and the Middle East.

"[The new fab is] 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," a statement by Intel reads.

This new investment, which involves the construction of Fab 38 and supporting facilities, promises to further enhance Intel's operations in the country as well as Israel's high-tech exports. The company currently operates four development and production sites in the country, including the Fab 28 plant in Kiryat Gat, which employs about 12,000 individuals and indirectly supports an additional 42,000 jobs. The new fab will generate several thousands of additional jobs. Also, Intel has pledged to purchase goods and services valued at 60 billion shekels (approximately $16.6 billion) from suppliers in Israel over the coming ten years.

Fab 28 produces chips on Intel 7 process technology (also known as 10nm Enhanced SuperFin). It is likely that Fab 38 will produce chips using Intel's post-18A fabrication node.