Intel plans to re-open its chip factory(Fab-8) in Jerusalem, Israel.

Intel announced its plan to close Fab 8, its last fab using 6-inch diameter wafers, in January 2007, citing plans to quit manufacturing ICs for automotive applications by the end of 2007.

Intel's decision to re-open in Jerusalem has been prompted by additional tax breaks, the report said. The report said production equipment would be moved from southeast Asia to Jerusalem.

This raises the possibility that the Jerusalem fab is being converted to packaging duties.

At the time of the closure announcement Intel said the 300 fab workers would be employed in other functions within Intel Israel and that a few dozen of developers would remain at the Jerusalem site while Intel looked for alternative uses for it.

By: DocMemory
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