Intel is investing $25 billion to expand its chip manufacturing plant in Kiryat Gat, Israel.

The Israeli government is providing a $3.2 billion grant for the project.

Intel has committed to purchasing $16.6 billion worth of goods and services from Israeli suppliers.

This investment is part of Intel's strategy to diversify its global supply chain and reduce reliance on chip production in Asia.

The move ensures Israel's position as a global center for semiconductor technology.

In response to the announcement, Intel shares have increased in pre-market trading.

Semiconductor stocks, including Intel, AMD, Nvidia, Qualcomm, and Texas Instruments have also experienced gains.