Intel in Israel Boulding (company website)
Intel is planning to invest $25 billion in a new plant to be located in Israel’s southern town Kiryat Gat. The news of the new investment was revealed matter of factly by Prime Minister Benjamin Netanyahu during his remarks made at Sunday’s weekly meeting of Israel’s cabinet.
Benjamin Netanyahu actually called the news “a small item.”
“We announced that agreement has been achieved in principle between Intel and the Finance Ministry,” he said, “on a huge and unprecedented investment by Intel in Israel, in a chip manufacturing plant, that will use the most advanced technology in the world.”
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“This is the largest investment ever in the State of Israel,” added Netanyahu. “This is an expression of great confidence in the Israeli economy and exactly reflects the strength of the free economy that we have built here and the technological economy that we are developing here.”
Israel’s Ministry of Finance said the new Intel plant is expected to open in 2027. It will be funded to operate through at least the year 2035 and will employ thousands of people. The Finance Ministry also stated that under the deal Intel will pay up a 7.5% tax rate, up from the current 5%.
“This is an unprecedented investment in scope, which, according to the experts at the Ministry of Finance, will yield significant macroeconomic benefits to the economy, especially in view of the apparent slowdown in the global economy and the global competition to attract technology companies in general and chip manufacturing companies in particular,” stated the ministry about the Intel investment. “In addition to this, the investment has direct financial benefits for the state in significantly higher volumes than the grants that will be given.”
Intel is valued at about 150 billion dollars and employs roughly 130,000 workers worldwide, of which about 12,000 are in Israel. Intel has been operating in Israel since the 1970s in development centers in Haifa, Jerusalem and Petach Tikva and in a production plant in Kiryat Gat.
Intel also owns Israeli video and driving safety tech developer Mobileye.
