US chipmaker Intel Corp INTC.O is reportedly halting plans for a $25 billion factory in Israel, according to Channel 12 News.

Intel sent letters in recent days requesting that the work on the plant be postponed. When asked about the report, the US company emphasised the need to adjust large projects to changing timelines without directly addressing the specific project.

During its almost five decades of operations in Israel, Intel has grown to become the country’s largest private employer and exporter and a leader of the local electronics and information industry, according to the company’s website.

Following the announcement of its new plant in December, two months after Israel launched its brutal bombing campaign in Gaza, activists called for the boycott of computers with Intel chips, and it urged investors to divest from Intel stock and major institutions to exclude Intel from tenders.

"Ethical responsibility and international law aside, by insisting on investing tens of billions of dollars in Israel, a ‘war zone,’ only miles away from occupied Gaza, Intel is putting its leaders’ fanatic ideological commitment to Israel over financial and fiduciary responsibility,” said the BDS spokesperson. “Why else would Intel freeze plans to expand its chipmaking manufacturing in Ohio while throwing those billions into Israel, a state committing genocide?”