Intel is halting the expansion of a major factory project in Israel, which was going to pump an extra $15 billion towards a chip plant.

The chip giant in December said it was going to expand an ongoing $10 billion plan at the Kiryat Gat site, in the south of the country, currently under construction.

Solicited by AFP, Intel on Monday gave no reason for the pause for the next phase and made no link to the ongoing conflict with Hamas in Gaza.

"Israel continues to be one of our key global manufacturing and R&D sites and we remain fully committed to the region," the company said in a statement.

It added that "managing large-scale projects, especially in our industry, often involves adapting to changing timelines."

"Decisions are based on business conditions, market dynamics and responsible capital management."

Israel is Intel's third-largest country of operation by asset size, according to its annual report, after the United States and Ireland.

The semiconductor giant has been present in Israel for fifty years, with the opening of a research center in Haifa.

During the 2010s, Intel became the leading employer in Israel's thriving tech sector, according to the company's website.

In 2017, the American company paid $15.3 billion to take control of Israeli start-up Mobileye, which specializes in assistance and autonomous driving.

Intel floated part of Mobileye's capital on the New York Stock Exchange in October 2022, but retains control of the company.