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, AFP reports.

The chip giant in December said it was going to expand an ongoing $10bn 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 50 years, with the opening of a research centre in Haifa. During the 2010s, Intel became the leading employer in Israel’s thriving tech sector, according to the company’s website.