Intel To Invest Up To $5B To Expand Production In Israel
May 16, 2018 | American multinational corporation and chipmaker giant Intel submitted plans to nearly double its manufacturing operations in Israel, and invest some $5 billion over the next two years. The details of the plans and timetables were not being disclosed at this point, Intel said in a statement this week. The company employs about 11,000 people in Israel and another 1,000 from Jerusalem-based Mobileye, which it acquired last year for $15.3 billion. It is considered the largest employer in the tech sector. Intel says that since it began operations in Israel, its investment in the Israeli economy has totaled $35 billion. Economy and Industry Minister Eli Cohen welcomed the latest plan, saying “Intel’s choice to continue making significant investments in Israel is an important expression of confidence in Israel and the Israeli economy.” Intel said it submitted a business plan, for government approval, to expand its operations in its Kiryat Gat fab technology plant. Haaretz reported that under the terms of the agreement with the Israeli government, Intel will get a 700 million-shekel grant ($194 million) and a reduced corporate income tax rate of just 5 percent until 2027. In return, Intel agreed to spend 3 billion shekels ($830 million) on local suppliers and will add 250 new jobs.