Intel To Invest $6 Billion In Israeli Tech In Largest-Ever Foreign Investment
This article was first published on The Times of Israel and was re-posted with permission.
Intel appears set to produce its next generation of chips in Israel with the largest-ever foreign investment in Israeli tech. Under a deal announced by the Finance Ministry Monday, Intel will spend $6 billion to upgrade its Kiryat Gat plant to enable production of next-generation computer chips. In return, Intel will get grants of up to $300 million over the next five years, as well as a major tax break through 2023.
For Israel, it’s worth the expense, said Finance Minister Yair Lapid. “Intel’s investment is a strategic asset for Israel,” he said, adding that it “provides additional proof of Israel’s capabilities in high-tech and innovation.”
The announcement signals the end of the drama that has surrounded Intel’s manufacturing plans over the past several years, as the company considered where to build a new plant to produce advanced 10 nanometer chips. The chips will power wearable technology and perceptual computing devices, which Intel believes will be a major growth area for the company in the coming years.
Intel was said to be considering building the plant in either Israel or Ireland.
In April, Intel announced that it had filed a plan with the government to upgrade the Kiryat Gat plant but did not specify what the upgrade would include. Based on Monday’s announcement, industry insiders said that Kiryat Gat was “almost definitely” going to be the site for development and manufacturing of the new chips.
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Picture by Lehava Center Qiryat Gat via the PikiWiki – Israel free image collection project