Intel will invest $25 billion in the construction of an additional factory in Israel
Intel will spend $25 billion to build a new semiconductor factory in Israel. Prime Minister of Israel Benjamin Netanyahu announced this, calling it the largest international investment in the country, writes Reuters.
The new Intel factory in Kiryat Gat is due to open in 2027, operate until at least 2035 and employ thousands of people, Israel’s finance ministry said. Under the deal, Intel will pay a 7.5 percent tax, up from the current 5 percent, the ministry added.
In fact, Intel has a very rich history of cooperation with Israel. Intel’s first factory outside the US, Fab 8, opened in 1985 in Israel, in Jerusalem. In 2009, this factory was requalified for the preparation of wafers for the manufacture of processors, but since 1996, the huge Fab 28/28a, at the time of its opening, one of the largest in the world, has been operating in Kiryat Gat.
Currently, Intel is one of the largest private employers in the country. And from time to time, the American chip manufacturer also invests money in Israeli companies and startups. Thus, in 2017, Intel purchased the Israeli company Mobileye Global, which develops and implements advanced driver assistance systems, for $15 billion.
Announcing the deal in a televised address to the cabinet, Prime Minister Netanyahu called it “a tremendous achievement for the Israeli economy – 90 billion shekels ($25 billion) – the largest investment ever by an international company in Israel”.
In response, Intel said its operations in Israel “played a crucial role” in the company’s global success.
”Our intention to expand manufacturing capacity in Israel is driven by our commitment to meeting future manufacturing needs … and we appreciate the continued support of the Israeli government,” it said.