2024-02-01 20:13:00
Last December, Intel confirmed INTEL CORPORATION +0.65% Close:0 Open:43.15 High:43.57 Low:42.49 Turnover:– page quote news graphs company profile recommendations additional articles on the subject: that it will invest an additional 15 billion dollars in upgrading the factory in Kiryat Gat, which brought The chip giant’s total investments in the State of Israel have been reduced to about 50 billion dollars in its 50 years of operation in the country. And that’s not all. Israel is considered one of the key countries for Intel, with the latter being considered the largest private employer in the country.
The company opened its first center in Israel near Shemen Beach in Haifa in 1974, where only five employees were employed at the time. Today, Intel owns development centers in Haifa, Jerusalem and Petah Tikva, in addition to a production plant in Kiryat Gat and employs approximately 12,000 people and this is expected to grow further in the coming years. The activity in Israel constitutes about 10% of the total activity and contains, in addition to production, also a lot of business development and research and development. Over the years, some Israeli Intel employees have been promoted to senior management positions and there are currently more than ten Israeli vice presidents at the chip giant.
Last year, Pat Gelsinger, the CEO of Intel, promised in interviews to the Israeli media that the company would continue to grow and recruit employees and even expressed hope that the number of employees of the company in Israel would cross the 20,000 mark, although he refused to refer to a timetable on the matter.
Over the years, Intel has acquired a number of Israeli companies, the most prominent of which is Amnon Shashua’s Mobileye for $15 billion. Recently, Intel was supposed to acquire the Israeli chip manufacturer Tower in a deal for 5.4 billion dollars, but the deal was canceled because the required regulatory approvals were not received. In 2022, Gelsinger said in an interview that he foresees more acquisitions in Israel in the coming years, mainly in the software field.
Intel’s support during the war
Intel is one of the first companies to join in with the start of the war with a host of benefits and benefits for employees, unlike other technology giants such as Amazon which decided to simply ignore even though one of its employees was kidnapped. About two months ago, in an interview for the American Fox network, the company’s CEO Pat Gelsinger said: “I have 20,000 people in Israel – I consider myself responsible for them. I see myself as responsible for everyone – from the direct workers to the receivers, about 17% of whom are currently in the reserves. We lost some in the war. Our families have lost their children, and we also have abductees. It’s very, very personal.”
The chip company announced at the start of the war that it would distribute a one-time grant of $5,000 to its employees in Israel. And that’s not all. Intel established a financial aid fund for employees who had to deal with the damage of the war, with the fund intended to cover up to $3,000 in expenses associated with evacuation from home, food and clothing expenses, and hosting families. The company allowed its employees to request reimbursement for expenses related to child care on days when educational institutions are closed, as well as to volunteer for up to five days and receive a full salary payment for this. Intel allowed its employees to increase the negative vacation balance, postpone the deletion of vacation days and request an advance on the salary account or a loan.
Gelsinger further added in the interview that: “The Israelis are among the most resourceful people there are. They have not missed a single order for the production of a silicon wafer or a development task, despite the conflict. This is why we believe in them so much, and it explains why we were the first international company that came here. We pray for peace and a permanent solution – because this is not a new problem. This matter has been at work for thousands of years, but we are committed to our activities there.”
How important is Intel to Israel?
Last June, Intel reported a jump in exports from Israel, which amounted to $8.7 billion in 2022, 1.75% of Israel’s GDP and 5.5% of all high-tech exports in the country. For comparison, in 2021, Intel’s exports from Israel amounted to $8 billion , which then accounted for 11% of total high-tech exports. Intel’s mutual procurement in Israel from subcontractors and suppliers also increased from $2.2 billion to $3.5 billion within a year, apparently due to the construction of the manufacturing plant at the time in Kiryat Gat.
The reports for the fourth quarter
In its latest reports, the chip maker posted earnings per share of 54 cents on revenues of $15.4 billion, compared to analysts’ expectations for earnings per share of 45 cents on revenues of $15.17 billion. The company generated a flow from operations of 4.6 billion dollars and distributed a dividend of 500 million dollars. The company’s stock fell after the company widely missed its forecast for the first quarter with an expected profit per share of 13 cents, while Wall Street expected a profit per share of 34 cents. Revenues for the quarter are expected to be between 12.2 billion and 13.2 billion dollars
Revenues from data centers and artificial intelligence totaled $4 billion, while analysts were expecting $4.08 billion. The computer sector brought in 8.84 billion dollars for Intel, compared to the expectation of 8.42 billion dollars. Mobileye brought in $637 million, compared to a consensus of $627.2 million. Intel’s manufacturing business revenue brought in 291 million, compared to an expected 342.5 million dollars. The gross profit margin was 48.8%, while the expectation was 46.5%.
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