Intel (INTC +0.3%) is taking full control of an Israeli plant it has leased to Micron (MU +1.3%), and which is currently used to make NOR flash memory. Intel will hire 800 full-time employees and 200 contract workers currently on Micron's payroll.
The chip giant had already expressed interest in taking over the plant, which was set to be shuttered in 2015, as well as in investing $10B to build a new Israeli fab and upgrade an existing facility.
Though the Micron fab will continue making NOR flash for now (NOR demand has been declining), Intel wants to eventually use it to make 10nm CPUs. Intel is looking to begin shipping 10nm CPUs in 2015, though mass-production might not happen until 2016.
Intel is reportedly looking for a $300M-$400M government grant to help pay for its investment. The company directly employs nearly 8K Israeli workers, and is indirectly responsible for many more.
NOR flash vendor Spansion (CODE +4.4%) is rallying.