Intel Corp (INTC.O) is halting plans for a $25-billion factory in Israel. The U.S. company emphasized the need to adapt large projects to changing timelines without directly addressing the specific project.

“Israel continues to be one of our key global manufacturing and R&D sites, and we remain fully committed to the region,” Intel stated.

The company explained that managing large-scale projects, especially in their industry, often requires adapting to changing timelines. “Our decisions are based on business conditions, market dynamics, and responsible capital management,” Intel added.

In December, the Israeli government agreed to provide Intel with a $3.2-billion grant for constructing the $25-billion chip plant in southern Israel. Intel previously mentioned that the proposed factory at its Kiryat Gat site, where it already has a chip plant, was a critical part of its efforts to enhance a more resilient global supply chain, in addition to the company’s investments in Europe and the United States.

Intel currently operates four development and production sites in Israel, including the Fab 28 manufacturing plant in Kiryat Gat, which produces Intel 7 technology or 10-nanometer chips. The new Fab 38 plant was initially planned to open in 2028 and operate through 2035. Intel employs nearly 12,000 people in Israel.

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