Intel to invest $25 billion to build factory in Israel
- The new plant to be built in Kiryat Gat, south of Tel Aviv, is slated to start operations by 2027 and remain active until at least 2035
Santa Clara, California-based chipmaker Intel Corp. has agreed in principle to build a $25 billion manufacturing plant in Israel.
The new plant to be built in Kiryat Gat, south of Tel Aviv, is slated to start operations by 2027 and remain active until at least 2035.
Israeli Prime Minister Benjamin Netanyahu has hailed it as the largest ever foreign investment in the country. Israel’s finance ministry announced the deal on Sunday.
Intel Israel confirmed the company’s “intention to expand manufacturing capacity in Israel”.
It said its intention to expand “is driven by our commitment to meeting future manufacturing needs and supporting Intel’s IDM 2.0 strategy, and we appreciate the continued support of the Israeli government.”
The project will add thousands of jobs to the existing 12,000 workers employed by the company in the Israel.
As per the deal, Intel will pay a 7.5% tax rate in Israel instead of the 5% it pays now, but may also become eligible for a significant government grant representing 12.8% of the total investment.“Intel’s decision to invest in Israel is an expression of confidence in the Israeli economy at a time of global uncertainty,” Israeli finance minister Bezalel Smotrich said in the statement.
“The unprecedentedly large investment will affect the growth of the Israeli economy in the coming years and advance quality employment.”
Intel has been operating in Israel since 1974.
During its almost five decades of operations in Israel, Intel has grown to become the country's largest privately held employer and exporter and a leader of the local electronics and information industry, according to the company's website.
In 2017, Intel bought Israel-based Mobileye Global Inc, which develops and deploys advanced driver-assistance systems, for $15 billion. Intel took Mobileye public last year.
(With inputs from agencies)
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First Published:18 Jun 2023, 08:36 PM IST
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