JERUSALEM, June 10 (Reuters) - Intel Corp ( INTC ) is

halting plans for a $25-billion factory in Israel, Israeli

financial news website Calcalist said on Monday, in a report

that the chipmaker did not confirm or deny.

The U.S. company, asked about the report, cited the need to

adapt big projects to changing timelines, without directly

referring to the project.

"Israel continues to be one of our key global manufacturing

and R&D sites and we remain fully committed to the region,"

Intel ( INTC ) said in a statement.

"Managing large-scale projects, especially in our industry,

often involves adapting to changing timelines. Our decisions are

based on business conditions, market dynamics and responsible

capital management," it said.

Israel's government in December agreed to give Intel ( INTC ) a

$3.2-billion grant to build the $25-billion chip plant in

southern Israel.

Intel ( INTC ) has previously said that the factory proposed for its

Kiryat Gat site, where it has an existing chip plant, was an

"important part of Intel's ( INTC ) efforts to foster a more resilient

global supply chain" alongside the company's investments in

Europe and the United States.

Intel ( INTC ) operates four development and production sites in

Israel, including its manufacturing plant in Kiryat Gat called

Fab 28. The factory produces Intel ( INTC ) 7 technology, or 10-nanometer

chips.

The planned Fab 38 plant was due to open in 2028 and operate

through 2035.

Intel ( INTC ) employs nearly 12,000 people in Israel.