According to Israeli Yedioth Ahronoth newspaper, Intel is considering building a new fab in southern Israel by 2012.

The proposed plant would reportedly cost Intel around $2.5 billion, and it would be the third Intel fab built in Israel. Currently only Fab 28 at Kiryat Gat is operational, while Fab 8 was closed and Fab 18 transfered to Numonyx. The chipmaker also has four R&D centers in Israel.

The Israeli government has been rather friendly to Intel, offering generous subsidies for its plants. This is no surprise, as Intel is currently one of Israel's top exporters, and last year Israeli Intel plants churned out $1.39 billion worth of chips for the global market.

Intel has not commented the report.

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