Based in the city of Kiryat Gat, the new Intel factory is expected to open in 2027 and create thousands of jobs.
Intel plans to invest $25bn in Israel to build a new chip factory, according to prime minister Benjamin Netanyahu, who called it the largest-ever international investment in the country.
In a widely reported announcement yesterday (18 June), Netanyahu and the Israeli finance ministry said that the factory will be based in the city of Kiryat Gat and is expected to open in 2027, employing thousands.
The move comes just days after Intel said it will build a new $4.6bn chip plant in Poland to meet growing European demand. The US giant has been trying to diversify its chip production globally as competition in the semiconductor industry continues to grow.
According to Reuters, Israel’s finance ministry said Intel will pay a 7.5pc tax rate as part of the deal – up from the current 5pc figure.
Addressing the Israeli cabinet, Netanyahu called Intel’s plans “a tremendous achievement for the Israeli economy” as it marks the largest investment made by an international company to date.
Intel has had a presence in Israel for nearly five decades and is one of the country’s most valuable multinationals. In 2017, Intel snapped up Israeli self-driving car company Mobileye in a $15.3bn deal, which it then took public last year at a valuation of nearly $17bn.
In a statement, Intel said its operations in Israel have “played a crucial role” in its global operations. “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,” the statement seen by Reuters read.
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