Intel and Trump Administration. What does it mean for Israel?

INTEL Israel is Israel’s largest private employer, and current developments at INTEL are naturally of utmost relevance to Israel.

Intel and the Trump administration have recently reached a historic agreement whereby the United States will become a shareholder in INTEL. Critics oppose this move, arguing that it is not the state’s responsibility to invest directly in private companies and become a shareholder.

INTEL in Israel

As of early 2025, Intel Israel employs approximately 9,350 people, a significant decrease from its peak of 12,000 in 2021 and 10,800 in 2023, marking the lowest headcount since 2013. This reduction is part of Intel’s global cost-cutting and restructuring efforts and has nothing to do with Israel and its war for survival.

Regarding gross income, Intel Israel’s revenue in 2020 was reported at $8 billion, up 14% from $6.6 billion in 2019, representing 2% of Israel’s GDP and 10.27% of Intel’s global revenue that year.

More recent data from 2022 indicates a peak revenue of about $9 billion, but sales dropped below $6 billion in 2023 due to Intel’s broader technological and commercial challenges.

The Deal

The deal is explained by INTEL, which is speaking about a historical agreement: “Intel Corporation today announced an agreement with the Trump Administration to support the continued expansion of American technology and manufacturing leadership. Under terms of the agreement, the United States government will make an $8.9 billion investment in Intel common stock, reflecting the confidence the Administration has in Intel to advance key national priorities and the critically important role the company plays in expanding the domestic semiconductor industry.

The government’s equity stake will be funded by the remaining $5.7 billion in grants previously awarded, but not yet paid, to Intel under the U.S. CHIPS and Science Act and $3.2 billion awarded to the company as part of the Secure Enclave program. Intel will continue to deliver on its Secure Enclave obligations and reaffirmed its commitment to delivering trusted and secure semiconductors to the U.S. Department of Defense. The $8.9 billion investment is in addition to the $2.2 billion in CHIPS grants Intel has received to date, making for a total investment of $11.1 billion.

“As the only semiconductor company that does leading-edge logic R&D and manufacturing in the U.S., Intel is deeply committed to ensuring the world’s most advanced technologies are American made,” said Lip-Bu Tan, CEO of Intel. “President Trump’s focus on U.S. chip manufacturing is driving historic investments in a vital industry that is integral to the country’s economic and national security. We are grateful for the confidence the President and the Administration have placed in Intel, and we look forward to working to advance U.S. technology and manufacturing leadership.”

Trump on Critics

“I PAID ZERO FOR INTEL, IT IS WORTH APPROXIMATELY 11 BILLION DOLLARS,” Trump wrote on Truth Social and continued: “All goes to the USA. Why are ‘stupid’ people unhappy with that? I will make deals like that for our Country all day long. I will also help those companies that make such lucrative deals with the United States States. I love seeing their stock price go up, making the USA RICHER, AND RICHER. More jobs for America!!! Who would not want to make deals like that?”

What does it mean for Israel?

Fundamentally, it will strengthen Israel’s position in the medium term, as Israel is considered a strategic partner for the US. With Intel, another anchor has been established. Intel in Israel thus represents, to a certain extent, the US as a state. Israel will thus be positioned even more intensively as a workshop for innovation in the future.

Any possible import and export restrictions, as they were in discussion, especially for chips, of the USA against Israel, are thus off the table. Meaning, Israel now has safe access to superchips. That’s a strategic asset.

Competitors in chip production, such as NVIDIA, have clearly recognised this and are now also seeking to establish innovation centres in the north. Overall, this is somewhat of a positive development for Israel. The risk is that the deep state could become somewhat more entrenched.

Pic AI generated. Aggregation of facts with Google and Grok.