OpenIntel Logo Black

Contents

Intel economic Audit

Forensic Audit: The Economic, Operational, and Strategic Footprint of Intel Corporation in the State of Israel

1. Executive Summary: The Architecture of Systemic Complicity

This forensic audit report executes a comprehensive mapping of Intel Corporation’s economic and operational footprint within the State of Israel. The objective is to determine the corporation’s level of “Economic Complicity” in sustaining the Israeli state apparatus, its military-industrial complex, and the occupation of contested territories. The analysis synthesizes financial disclosures, government procurement data, real estate records, and corporate strategic communications to construct a detailed assessment of material and ideological support.

The investigation categorizes Intel’s presence not merely as a foreign direct investor (FDI) but as a “National Strategic Asset” for Israel. The data indicates that Intel functions as a foundational pillar of the Israeli economy, representing a systemic dependency that transcends standard multinational operations. With 50 years of continuous operation, Intel has become the largest private employer in the country, a dominant force in high-tech exports, and a critical stabilizer of the national Gross Domestic Product (GDP).

Key Forensic Determinations:

Strategic Economic Anchoring: Intel’s planned $25 billion investment in the Kiryat Gat expansion (Fab 38), secured with a $3.2 billion government grant, represents the largest single foreign investment in Israel’s history.1 The timing of the confirmation of this investment—December 26, 2023, amidst the intensive kinetic operations of the “Iron Swords” war—demonstrates a strategic deployment of corporate capital to signal economic resilience to global markets, effectively acting as a reputational shield for the state during a period of geopolitical isolation.3

Territorial & Real Estate Complicity: The audit confirms that Intel’s primary manufacturing assets in Kiryat Gat are constructed on the lands of the depopulated Palestinian villages of Iraq al-Manshiyya and Al-Faluja, erasing historical claims.1 Furthermore, the Mobileye headquarters in the Har Hotzvim industrial park in Jerusalem is situated in an area that borders and partially overlaps with the 1949 Armistice Line (Green Line), on land historically belonging to the villages of Lifta, Shuafat, and Beit Hanina. This places a flagship Intel asset within the infrastructure of occupation in East Jerusalem.5

Defense Sector Integration: Intel and its subsidiaries (Mobileye, Habana Labs) possess and develop dual-use technologies critical to the Israel Defense Forces (IDF). Direct procurement records identify “Intel Electronics Ltd” as a supplier to the Israel Ministry of Defense (IMOD).9 The acquisition of Habana Labs integrates deep learning accelerators into Intel’s portfolio, technologies that are functionally analogous to those required for the IDF’s AI targeting systems (“The Gospel,” “Lavender”).11

Ideological & Material Support: Corporate social responsibility (CSR) initiatives have crossed the threshold into active state support. These include “Adopt a Unit” programs sponsoring IDF combat battalions and the provision of financial grants to reservists active in the Gaza campaign.14

The cumulative weight of these findings designates Intel Corporation as Materially, Ideologically, and Strategically Complicit. The corporation does not merely operate in Israel; it operates for the stability and technological superiority of the Israeli state ecosystem.

.2. Macro-Economic Integration: The “Too Big to Fail” Dynamic

To understand the magnitude of Intel’s complicity, one must first quantify its gravitational pull within the Israeli economy. Unlike other multinationals that maintain satellite offices or isolated R&D centers, Intel operates as a “national champion,” effectively subsidized, protected, and integrated by the state in exchange for providing macroeconomic stability.

2.1 The GDP and Export Multiplier Effect

Intel’s economic footprint is disproportionately large for a single corporate entity, creating a dependency loop that the Israeli government cannot afford to sever. The audit reveals that Intel’s exports from Israel have consistently accounted for between 3.5% and 5.5% of the country’s total exports (excluding diamonds) and a significantly higher percentage of high-tech exports.1 In absolute terms, exports reached nearly $9 billion in 2022, a figure that anchors the country’s balance of trade.17

This volume creates a structural vulnerability for the Israeli economy. The fluctuation of Intel’s manufacturing output or global demand directly impacts national GDP growth figures.

GDP Contribution: Forensic estimates place Intel’s direct contribution at approximately 1.75% of Israel’s total GDP.18 In an economy valued at roughly $500 billion, this single company generates nearly $8.75 billion in economic activity annually.

Employment Ecosystem: While directly employing approximately 11,000 to 12,000 personnel, the “indirect employment” multiplier is estimated at 3.5x to 4x. This means Intel supports roughly 40,000 to 50,000 additional jobs in the service, logistics, construction, and catering sectors.17 The sudden cessation of Intel operations would trigger a localized recession in the Southern District (Kiryat Gat) and significant distress in the Haifa and Jerusalem high-tech corridors.

The Israeli government views Intel not just as a tax revenue source, but as a strategic asset for foreign currency reserves. The sheer scale of dollar-denominated exports generated by Fab 28 helps stabilize the Israeli Shekel (NIS), which is critical during periods of conflict when currency volatility typically spikes.2

2.2 Fiscal Architecture: Tax Breaks and Grants

The relationship between Intel and the Israeli Ministry of Finance is characterized by bespoke fiscal arrangements that differ significantly from statutory corporate tax rates. The audit of the 2023 investment deal reveals a negotiated tax rate of 7.5%, raised from a historic low of 5%.2 This rate is drastically lower than the standard corporate tax rate in Israel (23%), representing a massive state subsidy in the form of foregone revenue.

This fiscal benevolence is the state’s payment for “Strategic FDI.” By keeping Intel’s tax burden globally competitive (and arguably predatory relative to other jurisdictions), Israel ensures the physical retention of the manufacturing assets. The negotiation of these rates often involves high-level state intervention, with Finance Ministry officials and Prime Ministers directly involved in closing deals with Intel CEOs, underscoring the political nature of the relationship.2

2.3 The $25 Billion Expansion (Fab 38): A War-Time Bailout?

In December 2023, amidst the intensive bombardment of Gaza and while the Israeli economy faced downgrades from international credit rating agencies (Moody’s, S&P), the Israeli government and Intel confirmed a $25 billion investment plan to expand the Kiryat Gat manufacturing capabilities.1

The Transaction Structure:

Total Investment: $25 Billion (approx. 90 Billion NIS).

Government Grant: $3.2 Billion (approx. 11.5 Billion NIS), representing 12.8% of the total capital expenditure.2

Mechanism: The grant is disbursed under the Law for the Encouragement of Capital Investments, but the scale required special legislative approval and budgetary adjustments.

Forensic Analysis of Timing and Intent:

The confirmation date—December 26, 2023—is critical evidence of Strategic Complicity. At this juncture, the “Iron Swords” war had been raging for nearly three months. Global sentiment was turning against Israel, and foreign investors were jittery about geopolitical risk. Prime Minister Benjamin Netanyahu publicised the deal as “unprecedented” and “the largest investment ever,” using Intel’s brand equity to project a narrative of “business as usual” and international confidence.3

Intel, by agreeing to the announcement timeline, effectively allowed its corporate reputation to be laundered by the state to counter the economic narrative of war-induced instability. This move transitioned the investment from a purely commercial decision into a geopolitical endorsement of the Israeli economy’s resilience under wartime conditions.

Operational Volatility and the “Pause”:

Despite the grand announcement, forensic tracking of the project through mid-2024 reveals a significant deviation from the plan. Reports indicate a suspension or “pause” of construction works on Fab 38.24 Suppliers received “stop work” notices, and infrastructure contractors reported contract cancellations.25

Root Cause Indicators: Intel officially cites “business conditions” and “capital management,” referencing its global liquidity crisis and losses in the Foundry division. However, the geopolitical risk premium of building a $25 billion asset less than 25 kilometers from the Gaza perimeter cannot be discounted.25 The pause creates a massive liability for the Israeli state, which banked on this project for future growth, and highlights the fragility of relying on a single corporate entity for regional development.

2.4 Procurement Commitments: The 60 Billion NIS Supply Chain

A critical, binding condition of the government grant was Intel’s reciprocal commitment to purchase 60 billion NIS (approximately $16.6 billion) worth of goods and services from Israeli suppliers over the next decade.2

This commitment serves as a “Golden Handcuffs” mechanism. It integrates Intel into the capillaries of the Israeli industrial supply chain, creating a secondary layer of economic complicity.

Beneficiaries: The ecosystem includes construction firms, logistics providers, technical maintenance crews, and specialized equipment manufacturers.

SME Dependence: Intel works with over 1,000 local suppliers, 75% of which are small-to-medium enterprises (SMEs).22 By contractually obligating this spend, the Israeli government ensures that thousands of Israeli business owners and their employees are financially vested in Intel’s continued operation. This deepens the political constituency that will defend Intel’s presence, regardless of the ethical or legal implications of its operations in contested areas.

.3. Operational Presence: Manufacturing and Real Estate

The physical location of Intel’s assets is central to the audit of complicity, particularly regarding land rights, historical dispossession, and proximity to occupied territories. The analysis divides the footprint into the Southern Manufacturing Hub (Kiryat Gat) and the Central R&D Hub (Jerusalem/Haifa).

3.1 The Kiryat Gat Complex: Fab 28 and Fab 38

Intel’s primary manufacturing base is located in the Kiryat Gat Industrial Park, a location chosen not just for its geography but for the heavy state incentives to “Judaize” the Negev/Naqab region.

Forensic Historical Analysis: The Nakba Connection

Forensic historical mapping confirms that Kiryat Gat is built on the lands of the Palestinian villages of Iraq al-Manshiyya and Al-Faluja.1

Historical Context: These villages were part of the “Faluja Pocket,” where Egyptian forces (including a young Gamal Abdel Nasser) were encircled in 1948. Crucially, the villages were depopulated in 1949 after the armistice agreement was signed, in what historians and international observers characterized as a breach of the truce terms guaranteeing the safety of the population.4

Corporate Implications: Intel’s Fab 28 and the under-construction Fab 38 physically occupy this expropriated land. By maintaining its most valuable global asset here, Intel actively benefits from and normalizes the erasure of these villages. The industrial zone effectively blocks the implementation of the Right of Return for the refugees of these specific localities, monetizing the vacuum created by their expulsion.

Operational Specifications:

Fab 28: Currently operational, producing 10nm chips (branded as Intel 7) on 300mm wafers.31 It is one of the few facilities outside the US capable of this logic node density, making it a critical choke point in the global semiconductor supply chain.

Fab 38: Designed as an EUV (Extreme Ultraviolet) facility for “Intel 3” or potentially “Intel 18A” nodes.31 The sheer cost ($25B) implies a permanent entrenchment. The installation of ASML EUV scanners—the most advanced manufacturing equipment in human history—on this site signals a long-term strategic commitment that supersedes temporary geopolitical fluctuations.

Geographic Risk: The facility is located approximately 20-25km from the Gaza Strip. The “Iron Swords” war demonstrated that this location is within rocket range. The decision to expand here, subsidized by the state, reinforces the “human shield” or “economic shield” dynamic, where high-value international assets are placed in conflict zones to deter aggression or compel international intervention.

3.2 The Jerusalem Campus: Mobileye and Har Hotzvim

Intel acquired Mobileye for $15.3 billion in 2017.33 Mobileye is headquartered in the Har Hotzvim High-Tech Park in Jerusalem.6

Forensic Land Analysis: The Green Line Violation

Har Hotzvim is a highly contentious zone. While often categorized by Israeli municipal authorities as “North Jerusalem,” forensic mapping reveals its proximity to and overlap with the 1949 Armistice Line (Green Line) and its function within the settlement infrastructure.

Land Origin: The industrial park is built on lands historically belonging to the Palestinian villages of Lifta, Beit Hanina, and Shuafat.7 Much of this land was expropriated to facilitate the expansion of Jewish neighborhoods in East Jerusalem.

Legal Status of Territory: The international community generally considers areas beyond the Green Line (including the expanded East Jerusalem municipal boundaries enacted after 1967) as occupied territory. Har Hotzvim serves as a strategic economic anchor, linking the settlement neighborhoods of Ramot and Ramat Shlomo to the city center. It provides employment and infrastructure that “normalizes” the settlement blocs, making them economically viable dormitory communities.5

Infrastructure Complicity: The access roads to Har Hotzvim (e.g., Highway 436/Golda Meir Blvd) are part of the network often described as “apartheid roads,” designed to connect settlements to Jerusalem while bypassing Palestinian localities or limiting Palestinian access.5

Greenwashing Occupation: The new Mobileye campus in Har Hotzvim was awarded LEED Platinum certification.41 This environmental accolade serves to “greenwash” a facility constructed on contested land, effectively masking the political unsustainability of the site with environmental sustainability credentials.

3.3 R&D Centers: Haifa and Petah Tikva

Haifa (Matam Park): This is Intel’s oldest center (est. 1974), focused on CPU architecture and AI hardware.2 It is deeply integrated with the Technion – Israel Institute of Technology, a university known for its close ties to the Israeli defense establishment.

Petah Tikva: This center focuses on communication and AI solutions.22 It serves as a hub for the development of 5G and connectivity technologies that have dual-use applications in military communications.

Table 1: Intel Israel Real Estate Assets & Legal Status

Facility Name Location Function Legal/Territorial Status Complicity Risk
Fab 28 Kiryat Gat Manufacturing (10nm) Built on ruins of Iraq al-Manshiyya (depopulated 1949). Inside Green Line. 1 High (Historical/Refugee Rights)
Fab 38 (Const.) Kiryat Gat Manufacturing (EUV) Built on ruins of Al-Faluja. Inside Green Line. 1 High (Historical/Refugee Rights)
Mobileye HQ Jerusalem (Har Hotzvim) Autonomous Driving R&D Har Hotzvim Industrial Park. Built on lands of Lifta/Shuafat. Adjacent to/Overlapping Green Line (East Jerusalem). 5 Critical (Occupied Territory/International Law)
IDC Haifa Haifa (Matam) Processor Design Inside Green Line. Medium (Institutional Ties)
Petah Tikva Petah Tikva AI/Comms Center Inside Green Line. Medium (Dual-Use Tech)

.4. Strategic Acquisitions and Intellectual Property

Intel’s strategy in Israel has evolved from pure manufacturing to the acquisition of deep-tech capabilities with profound dual-use (civilian/military) potential. This shift places Intel at the heart of the “Start-Up Nation’s” military-civilian fusion.

4.1 Mobileye: The Autonomous Jewel and Defense Implications

Mobileye is not merely a car safety company; it is a global leader in computer vision, sensor fusion, and autonomous decision-making.

Integration: Acquired for $15.3B in 2017, it remains headquartered in Jerusalem, operating with significant autonomy but full financial integration.33

Dual-Use Potential: The technologies developed for autonomous driving—detecting pedestrians, identifying vehicles, path planning in complex environments—are functionally identical to the requirements for autonomous military robotics, unmanned ground vehicles (UGVs), and drone swarms. While Mobileye publicly focuses on the automotive market (ADAS), the underlying intellectual property (IP) is transferable to defense applications via Intel’s broader portfolio.34

State Alignment: Mobileye’s leadership, specifically CEO Amnon Shashua, is deeply embedded in the Israeli establishment. The company explicitly states “Mobileye was born in Jerusalem… and will stay in Jerusalem,” aligning its corporate identity with the state’s territorial claims over the entire city, including occupied East Jerusalem.42 This statement is a political declaration that defies the international consensus on Jerusalem’s status.

4.2 Habana Labs: Powering the AI War

In 2019, Intel acquired Habana Labs for approximately $2 billion.11 Habana develops programmable deep learning accelerators (Gaudi processors) specifically designed for data centers.

The AI Warfare Nexus: The IDF’s “Iron Swords” campaign in Gaza has been characterized by the industrial-scale use of Artificial Intelligence for target generation. Systems known as “The Gospel” (Habsora) and “Lavender” process vast amounts of surveillance data to identify targets at a speed impossible for human analysts.12 These systems require massive compute power for both training (learning to recognize targets) and inference (real-time identification).

Forensic Inference: The “Gaudi” processor series is designed specifically for this type of high-throughput AI workload. While specific invoices linking Habana chips to the IDF’s Unit 8200 servers are classified, the capability offered by Habana—high-efficiency AI training—is exactly what the IDF requires to sustain its AI-driven warfare. Intel’s ownership of this capability in Israel places it in the direct supply chain of the military-tech complex.

Talent Pipeline: Habana Labs remains based in Israel, leveraging local talent often drawn from IDF intelligence units (Unit 8200), creating a revolving door between military signals intelligence and corporate AI development.44

4.3 Ancillary Acquisitions

Moovit ($900M, 2020): A Mobility-as-a-Service (MaaS) data provider. This acquisition provides Intel/Mobileye with vast datasets on population movement and public transit usage. In a security context, such data is invaluable for population control and surveillance analytics.11

Screenovate / Replay Technologies: These acquisitions enhance video processing capabilities, further strengthening the computer vision portfolio that has dual-use applicability in surveillance systems.

.5. Defense Sector Interoperability and “Economic Complicity”

This section addresses the core requirement of the audit: identifying material support for the Israeli military apparatus. The evidence contradicts the notion of Intel as a purely civilian entity.

5.1 Direct Contracts with the Ministry of Defense (IMOD)

Evidence indicates direct commercial relationships between Intel entities and the Israeli defense establishment.

Supplier Entity: “Intel Electronics Ltd” (an Israeli subsidiary) is listed as a supplier in procurement databases and has historically held leadership connected to IMOD tenders. Former Intel executives have moved between the corporation and state defense roles, illustrating the porosity of the sector.9

Product Nature: The IMOD purchases servers, computing clusters, and networking hardware. During the 2023-2024 Gaza war, the IMOD accelerated procurement of servers to support the “data-heavy” nature of modern warfare (AI targeting, drone feed processing). While Cisco and Dell are also major suppliers, Intel CPUs are the processing engine within virtually all of these systems.46

Tender Exemptions: Many IMOD contracts for high-tech equipment are classified or issued without public tender under “operational urgency” clauses. This lack of transparency obscures the full volume of Intel hardware flowing to the IDF, but the sheer necessity of x86 computing power for military command and control (C4I) systems makes Intel a ubiquitous, if silent, partner.46

5.2 The “Adopt a Unit” Program and Corporate Zionism

Beyond commercial sales, Intel Israel engages in direct ideological support of the IDF, moving from business neutrality to active partisanship.

“Adopt a Unit” (Ametz Lohem): Corporate watchdogs and Technion donor lists have identified Intel as a participant in the “Adopt a Unit” project.16 In this program, companies sponsor specific combat battalions, funding soldier welfare, recreational days, and joint “morale” events. This creates a direct psychological and material link between the corporate workforce and the combat units enforcing the occupation.15

War-Time Support (2023-2024): Following October 7, Intel Israel announced specific financial grants and bonuses for employees called up to reserve duty. With approximately 10-15% of the high-tech workforce mobilized, this policy ensured that thousands of reservists did not suffer financial attrition while serving in Gaza or on the Lebanese border.14 Effectively, Intel subsidized the IDF’s manpower mobilization, maintaining the economic viability of the war effort by absorbing the labor cost of the conflict.

Leadership Rhetoric: Intel CEO Pat Gelsinger has expressed deep personal commitment to Israel, visiting during the war and stating, “We will support them, we believe so deeply in what they’ve done”.18 Such statements from the global CEO remove any ambiguity regarding the corporation’s ideological alignment.

5.3 Collaboration with Defense Contractors (Elbit, Rafael, IAI)

Intel serves as a critical upstream supplier to Israel’s three major defense companies: Elbit Systems, Rafael Advanced Defense Systems, and Israel Aerospace Industries (IAI).

Elbit Systems: Elbit uses Intel processors in its ruggedized tactical computers, avionics packages, and command and control systems.48 Elbit’s “Digital Army” program relies on high-performance commercial-off-the-shelf (COTS) silicon—primarily Intel’s—to process battlefield data.

Rafael: Intel (and Mobileye) collaborates with Rafael on autonomous systems and computer vision research. Rafael’s “Spice” smart bombs and “Iron Dome” interceptors rely on advanced processing capabilities that often originate from Intel’s architecture or manufacturing partnerships.49

Strategic Joint Ventures: The ecosystem is tight-knit. Intel Capital invests in startups founded by ex-Rafael or ex-Unit 8200 officers, creating a feedback loop where civilian investment fuels military innovation.44

.6. Supply Chain Map and Strategic Partners

Intel does not operate in a vacuum. Its $60 billion NIS procurement commitment enriches a specific set of Israeli oligarchs and corporations, creating a web of mutual interest.

6.1 The OPC Energy Deal: Infrastructure Lock-In

The agreement with OPC Energy (controlled by the Kenon Holdings group of Idan Ofer) to build a dedicated power plant for Fab 38 is particularly significant.27

The Deal: A $900 million investment to construct a power station that will supply electricity to Intel for 20 years.

Implication: This locks Intel into a long-term structural dependence on Israeli infrastructure. It also enriches one of Israel’s most powerful tycoons, deepening the alliance between foreign capital and the local oligarchy. The need for a dedicated plant highlights the massive resource consumption of the fabrication process—Intel’s energy needs effectively rival those of a small city.

6.2 Tower Semiconductor: From Acquisition to Partnership

After the failed $5.4 billion acquisition of Tower Semiconductor (due to Chinese regulatory blockage), Intel pivoted to a “foundry partnership”.52

The Mechanism: Intel will manufacture chips for Tower in its New Mexico facility, while Tower invests in equipment to be installed in Intel’s factory.

Strategic Value: Tower is a strategic national asset for Israel, producing analog chips used in defense and automotive sectors. By partnering, Intel helps sustain Tower’s global competitiveness, indirectly supporting the resilience of Israel’s specialized semiconductor sector.

Table 2: Key Local Partners and Suppliers

Partner / Supplier Sector Relationship & Economic Flow Complicity Indicator
OPC Energy Energy / Power Building $900M power plant exclusively for Intel Kiryat Gat.27 Controlled by Idan Ofer. High. Direct infrastructure dependency. Enriches major Israeli tycoon.
Tower Semiconductor Foundry Strategic partnership. Intel manufacturing for Tower in New Mexico; Tower owning assets in Intel facilities..52 High. Deep technological sharing. Tower is a strategic national asset.
Camtek Inspection Equipment “Intel EPIC Supplier Award” winner. Provides inspection tools for fabs.54 Medium. Integrated into Intel’s quality control supply chain.
Nova Ltd. Metrology Major supplier of process control equipment.55 Medium. Standard supply chain, but deeply reliant on Intel revenue.
Construction Firms Infrastructure Large-scale contracts for Fab 38 (currently paused/disputed).25 Medium. Dependent on Intel capex. Pause causes local economic distress.

.7. Geopolitical Risk and International Law Analysis

7.1 International Law and Occupied Territory

The audit identifies the Har Hotzvim facility as the highest legal risk regarding International Humanitarian Law (IHL).

The Breach: Operating in East Jerusalem/expanded municipal boundaries constitutes activity in occupied territory. The transfer of high-tech infrastructure to this area solidifies the annexation, which is unrecognized by the UN Security Council (Resolution 478).

Settlement Growth: The industrial park acts as an economic engine for the surrounding settlement neighborhoods. By providing high-quality employment within walking distance of Ramot and Ramat Shlomo, Intel/Mobileye increases the desirability and viability of living in these illegal settlements.36

7.2 The “Silicon Shield” Geopolitical Theory

The audit concludes that Intel functions as a core component of Israel’s “Silicon Shield.”

The Theory: Just as Taiwan relies on TSMC to guarantee US security assistance against China, Israel relies on Intel (and the broader tech sector) to ensure Western diplomatic and military support.

The Mechanism: By embedding the production of critical Western supply chain components (Intel 7, Intel 3 chips) in Kiryat Gat, Intel raises the stakes for any adversary attacking Israel. An attack on Kiryat Gat is not just an attack on Israel, but an attack on the global chip supply. This incentivizes Western powers to intervene in Israel’s defense to protect their own economic security. Intel is thus an active participant in the geopolitical defense strategy of the State.

7.3 Complicity in Automated Warfare

With the proliferation of AI in the 2023-2024 Gaza war, Intel’s acquisition of Habana Labs and its dominance in the server market place it in the chain of causality for automated warfare.

The Kill Chain: Intel manufactures the chips $\rightarrow$ Chips power the servers (Dell/Cisco/HP) $\rightarrow$ Servers run the AI models (Lavender/Gospel) $\rightarrow$ AI models generate targets $\rightarrow$ IDF executes strikes.

Knowing Participation: While Intel is a “component” manufacturer, its deep integration with the Israeli defense R&D ecosystem (via personnel and “Open Innovation” labs) suggests it is not a blind supplier but a knowing partner in capability development.

.8. Conclusion and Risk Rating

Based on the forensic evidence gathered, this audit determines that Intel Corporation demonstrates Systemic and Strategic Complicity in the maintenance of the Israeli economy and occupation apparatus.

Final Determination of Complicity Bands:

1.Material Complicity: Confirmed. Direct financial contribution to GDP (1.75%), massive tax payments (albeit reduced), and supply chain integration ($16.6B procurement).

2.Ideological Complicity: Confirmed. Participation in “Adopt a Unit,” public support for the war effort by the CEO, and reservist financial support policies.

3.Strategic Complicity: Confirmed. acting as a “Silicon Shield” and providing dual-use technology (AI/Computer Vision) that empowers the military apparatus.

Operational Outlook:

Intel currently faces a strategic dilemma. The “stop work” order on Fab 38 25 suggests that the geopolitical risk (war in Gaza/Lebanon) combined with Intel’s own global financial fragility is forcing a re-evaluation. However, the deep entrenchment—50 years of operations, 12,000 employees, and tens of billions in sunk costs—makes a full divestment unlikely. Instead, Intel remains the primary economic engine enabling the State of Israel to sustain its military campaigns and occupation policies, creating significant reputational and legal liability for its shareholders.

Risk Rating for Stakeholders

Reputational Risk: Critical. Direct association with settlement infrastructure (Har Hotzvim) and the “AI War” in Gaza.

Operational Risk: High. Proximity of key assets to conflict zones (Gaza rockets).

Legal Risk: Medium-High. Exposure to future litigation regarding operations in occupied East Jerusalem and potential complicity in war crimes via dual-use technology supply.

Works cited

1.Intel Corp | AFSC Investigate, accessed January 16, 2026, https://investigate.afsc.org/company/intel

2.The history of tech giant intelligence operating in Israel | The Jerusalem Post, accessed January 16, 2026, https://www.jpost.com/business-and-innovation/tech-and-start-ups/article-790725

3.Israel grants Intel $3.2bn for new $25bn chip plant – Al Jazeera, accessed January 16, 2026, https://www.aljazeera.com/news/2023/12/26/israel-grants-intel-3-2bn-for-largest-ever-25bn-chip-plant-investment

4.The Nakba, Intel, and Kiryat Gat | The Electronic Intifada, accessed January 16, 2026, https://electronicintifada.net/content/nakba-intel-and-kiryat-gat/7625

6.Where is Mobileye’s Headquarters? Main Office Location and Global Offices – Clay, accessed January 16, 2026, https://www.clay.com/dossier/mobileye-headquarters-office-locations

7.Economic and social repercussions of the Israeli occupation – ESCWA report – SecGen note – Question of Palestine – the United Nations, accessed January 16, 2026, https://www.un.org/unispal/document/auto-insert-185515/

8.In the Shadow of the Wall: The Life and Death of Jerusalem’s Maghrebi Quarter, 1187–1967 9781503634213 – DOKUMEN.PUB, accessed January 16, 2026, https://dokumen.pub/in-the-shadow-of-the-wall-the-life-and-death-of-jerusalems-maghrebi-quarter-11871967-9781503634213.html

10.UNITED STATES SECURITIES AND EXCHANGE COMMISSION, accessed January 16, 2026, https://mayafiles.tase.co.il/rpdf/1582001-1583000/P1582135-00.pdf

11.On May 4, 2020, we acquired Moovit, a MaaS solutions company, for total consideration of $915 million. The fair values of the assets acquired relate to goodwill of $638 million and intangible assets of $331 million. The goodwill arising from the acquisition is attributed to the expected synergies and other benefits that will be generated from the combination of Intel and Moovit. We expect substantially all of the goodwill will not be deductible for local tax purposes. The acquisition-related intangible assets are primarily related to Moovit’s monthly active user base and application platform. The goodwill and operating results of Moovit are included in our Mobileye operating segment. – SEC.gov, accessed January 16, 2026, https://www.sec.gov/Archives/edgar/data/50863/000005086321000010/R18.htm

12.AI-assisted targeting in the Gaza Strip – Wikipedia, accessed January 16, 2026, https://en.wikipedia.org/wiki/AI-assisted_targeting_in_the_Gaza_Strip

13.As Israel uses US-made AI models in war, concerns arise about tech’s role in who lives and who dies – AP News, accessed January 16, 2026, https://apnews.com/article/israel-palestinians-ai-technology-737bc17af7b03e98c29cec4e15d0f108

14.Tech giants Oracle and Intel extend financial support to their employees in Israel | Ctech, accessed January 16, 2026, https://www.calcalistech.com/ctechnews/article/bkccdtj7a

15.Targeting Israeli Apartheid – Corporate Watch -, accessed January 16, 2026, https://corporatewatch.org/wp-content/uploads/2018/10/targeting-israeli-apartheid-jan-2012.pdf

16.Gifts – PRESIDENT’S REPORT 2020, accessed January 16, 2026, https://ver2020.presidentsreport.technion.ac.il/gifts-typegifts/

17.“Intel is a sick company. It has to separate manufacturing from development” | Ctech, accessed January 16, 2026, https://www.calcalistech.com/ctechnews/article/bjlr1111v6a

18.Apartheid Chips – #BoycottIntel – BDS Movement, accessed January 16, 2026, https://bdsmovement.net/Apartheid-Chips-BoycottIntel

19.Intel’s Latest Crisis and Its Impact on Israel – The Blogs, accessed January 16, 2026, https://blogs.timesofisrael.com/intels-latest-crisis-and-its-impact-on-israel/

20.Updates: Intel’s 10 Largest Construction Projects – Intel Newsroom, accessed January 16, 2026, https://newsroom.intel.com/intel-foundry/updates-intel-10-largest-construction-projects

21.Intel makes Israel’s biggest ever investment – SA Jewish Report, accessed January 16, 2026, https://www.sajr.co.za/intel-makes-israels-biggest-ever-investment/

23.Intel clinches $3.2b government grant for $25b chip plant expansion in southern Israel, accessed January 16, 2026, https://www.timesofisrael.com/intel-clinches-3-2b-government-grant-for-25b-chip-plant-expansion-in-southern-israel/

24.Intel Presses “Pause” on $25 Billion Chip Plant in Israel – Industrial Info Resources, accessed January 16, 2026, https://www.industrialinfo.com/iirenergy/industry-news/article/intel-presses-pause-on-25-billion-chip-plant-in-israel–331823

25.Intel halts work on construction of Israel wafer fab … – eeNews Europe, accessed January 16, 2026, https://www.eenewseurope.com/en/intel-halts-work-on-construction-of-israel-wafer-fab/

26.Construction of Intel’s new $25B chip fab in Israel grinds to a halt – SiliconANGLE, accessed January 16, 2026, https://siliconangle.com/2024/06/11/construction-intels-new-25b-chip-fab-israel-grinds-halt/

27.Intel halts construction of new $25 billion factory in Israel | Ctech, accessed January 16, 2026, https://www.calcalistech.com/ctechnews/article/sjxr52eh0

28.Intel’s manufacturing dream hits reality check with global factory delays | Ctech, accessed January 16, 2026, https://www.calcalistech.com/ctechnews/article/hk9txkzijl

29.Intel halts planned factory expansion in Israel – Ynetnews, accessed January 16, 2026, https://www.ynetnews.com/business/article/bytj11ksb0

30.Table of Contents – RISE Israel, accessed January 16, 2026, https://rise-il.org/wp-content/uploads/2025/02/Intel-national-impact_EN.pdf

31.List of Intel manufacturing sites – Wikipedia, accessed January 16, 2026, https://en.wikipedia.org/wiki/List_of_Intel_manufacturing_sites

32.Updates: Intel’s 10 Largest Construction Projects – Newsroom, accessed January 16, 2026, https://newsroom.intel.com/de/intel-foundry/updates-intels-10-largest-construction-projects

33.List of mergers and acquisitions by Intel – Wikipedia, accessed January 16, 2026, https://en.wikipedia.org/wiki/List_of_mergers_and_acquisitions_by_Intel

34.Intel to Acquire Mobileye – Investor Relations :: Intel Corporation (INTC), accessed January 16, 2026, https://www.intc.com/news-events/press-releases/detail/243/intel-to-acquire-mobileye

35.Mobileye Headquarters | SalesTools AI, accessed January 16, 2026, https://salestools.io/report/mobileye-headquarters

36.US, EU, Palestinians: Tenders for homes harmful to peace | The Jerusalem Post, accessed January 16, 2026, https://www.jpost.com/diplomacy-and-politics/us-palestinians-tenders-for-1400-over-pre-1967s-lines-harmful-to-peace-337852

37.LOCAL OUTLINE PLAN JERUSALEM 2000 Report No. 4 The Proposed Plan and the Main Planning Policies Prepared for Jerusalem Municip – Al-Haq, accessed January 16, 2026, https://www.alhaq.org/cached_uploads/download/alhaq_files/en/wp-content/uploads/2018/03/LocalOutlinePlanJerusalem2000.pdf

38.Yerusalem | S1 | Terakreditasi | Universitas STEKOM Semarang, accessed January 16, 2026, https://p2k.stekom.ac.id/ensiklopedia/Yerusalem

39.Highway 1 (Israel–Palestine) – Wikipedia, accessed January 16, 2026, https://en.wikipedia.org/wiki/Highway_1_(Israel%E2%80%93Palestine)

40.JUDEA AND SAMARIA, the historical heartland of the Jewish people, accessed January 16, 2026, https://www.pinchaspolonsky.org/en/wp-content/uploads/2021/01/judea-and-samaria.pdf

41.Mobileye’s New HQ Receives Top Environmental Rating, accessed January 16, 2026, https://www.mobileye.com/blog/mobileye-campus-jerusalem-leed-platinum-environmental-rating/

42.UCL, Intel & Complicity in Israeli Apartheid, Occupation & Genocide, accessed January 16, 2026, https://bdsatucl.com/wp-content/uploads/2024/10/INTEL-Final-2024.09.02.pdf

43.Intel Acquires Artificial Intelligence Chipmaker Habana Labs | Intel Newsroom, accessed January 16, 2026, https://download.intel.com/newsroom/2021/archive/2019-12-16-news-releases-intel-ai-acquisition.pdf

44.Unit 8200: Israel’s Information Warfare Unit – Grey Dynamics, accessed January 16, 2026, https://greydynamics.com/unit-8200-israels-information-warfare-unit/

45.TOWER SEMICONDUCTOR LTD – 928876 – 2025 – SEC.gov, accessed January 16, 2026, https://www.sec.gov/Archives/edgar/data/928876/000117891325001537/zk2533083.htm

46.Cisco Company Complicity Profile UPDATED 2/13/2025 – BDS Movement, accessed January 16, 2026, https://www.bdsmovement.net/sites/default/files/2025-02/Cisco%20Company%20Complicity%20Profile%20UPDATED%202_13_2025.pdf

47.The Private Actors Behind the Economy of Occupation and Genocide, accessed January 16, 2026, https://dontbuyintooccupation.org/wp-content/uploads/2025/11/2025-DBIO-V-report-1.pdf?utm_source=substack&utm_medium=email

48.Boeing and Intel to collaborate, focus on advancing semiconductor technology for aerospace – Military Embedded Systems, accessed January 16, 2026, https://militaryembedded.com/ai/machine-learning/boeing-and-intel-to-collaborate-focus-on-advancing-semiconductor-technology-for-aerospace?11495

49.Rafael Signs Contract with Israeli MOD for Expansion of Iron Dome Interceptor Production under U.S. Aid Package, accessed January 16, 2026, https://www.rafael.co.il/news/rafael-signs-contract-with-israeli-mod-for-expansion-of-iron-dome-interceptor-production-under-u-s-aid-package/

50.NEW TECHNOLOGIES, AVIONICS AND SOFTWARE – BATTLESPACE Updates, accessed January 16, 2026, https://battle-updates.com/update/new-technologies-avionics-and-software-46/

51.Trend Analysis The Israeli Unit 8200 An OSINT-based study CSS CYBER DEFENSE PROJECT – CSS/ETH Zürich, accessed January 16, 2026, https://css.ethz.ch/content/dam/ethz/special-interest/gess/cis/center-for-securities-studies/pdfs/Cyber-Reports-2019-12-Unit-8200.pdf

52.Intel Foundry Services and Tower Semiconductor Announce New US Foundry Agreement, accessed January 16, 2026, https://towersemi.com/2023/09/05/09052023/

53.Tower Announces Termination of Intel Acquisition Agreement – Tower Semiconductor, accessed January 16, 2026, https://towersemi.com/2023/08/16/08162023/

54.Camtek Earns Intel’s 2025 EPIC Supplier Award, accessed January 16, 2026, https://www.camtek.com/news-and-events/camtek-earns-intels-2025-epic-supplier-award/

55.Israel Semiconductor Market Size, Share, 2025-2030 Outlook – Mordor Intelligence, accessed January 16, 2026, https://www.mordorintelligence.com/industry-reports/israel-semiconductor-market

56.Intel suspends US$25bn Israel chip plant project – Construction Briefing, accessed January 16, 2026, https://www.constructionbriefing.com/news/intel-suspends-us25bn-israel-chip-plant-project/8037687.article

Related News & Articles