Originally Posted by Hwgeek
Heads Up- just posted on the News here in Israel:
Intel has informed its suppliers that it is postponing the construction of its new fabrication facility in southern Israeli town Kiryat Gat to an unknown date, according to an anonymous tip sent to Calcalist. After reaching out to the company's local suppliers, two subcontractors confirmed to Calcalist on condition of anonymity that work on the planned expansion, initially intended to begin in 2019, is being pushed off to an undisclosed date.
So whats going on? Intel CEO Bob Swan is currently visiting here, Maybe they have change of plans? going 7nm or other plan?
They wanted to expand the factory's size, but they were not allowed the full size they requested, as they also wanted to create another fabrication line for research with future plans, so they are postponing the reconstruction and they are planning to play chicken with the town's council, or who will blink first, to try and force them into allowing them to fully expand what they wanted.
The request for bigger expansion was done about last year, and they were initially told it will be fine, so they already put things into plan, but then the city wanted to reduce the size, so they are now delaying things since they might also have to change their construction plans.
Besides that, that factory is not their only one for 10nm they are reconstructing. It would be a supporting factory to make 10nm chips, and partially to support the research facility in haifa. But they also want to research there new 7nm and 5nm for future production and new chip technology, which currently the haifa teams need to sometimes import from other fabs around the world, which cost them a lot of time and money.