Digital economy
Intel to make $6 billion investment in Kyriat Gat chip plant: Largest single investment by a foreign company in the country
The Israeli ministries of economy and finance have approved a plan to award US semiconductor giant Intel a grant of $300 million (€233m) over five years. The grant cmes as Intel is due to make investments in Israel to the tune of some $6 billion (€4.6bn) in the upgrade of its chip manufacturing plant in the southern town of Kyriat Gat, in what would be the largest single investment by a foreign company in the country.
In addition to the grant, Intel will benefit from a reduced companies tax rate of 5% for ten years. The US chip giant plans to hire close to 1,000 more workers at the Kyriat Gat plant by 2023, in addition to the 2,500 that already work there. Israeli Economy Minister Naftali Bennett told the Globes magazine : “We approved the biggest investment in the country’s history. Without this grant, Intel would have carried out this large investment in other places, such as in Ireland or the US, where the red carpet had already been rolled out for it.”
The new plant will employ 1,000 people and the Ministry of Economy said that the new plant would create an additional 2,500 jobs indirectly. “Intel’s investment is a strategic asset for Israel’s industry,” Finance Minister Yair Lapid said in a statement. “This is the biggest investment by a foreign company ever in Israel and is further proof that Israel is at the forefront of technology and innovation.” Intel submitted the investment plan in May and it is widely believed to be aimed at shifting to new 10 nanometre technology.
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