Intel Announces Record High Contribution To Israeli Economy

US chip giant Intel released its 2021-2022 corporate responsibility report last week, announcing its all-time high contribution to Israel’s economy, The Jerusalem Post reported.

Intel serves as Israel’s largest employer in the high-tech industry, employing over 14,000 people through Intel and Mobileye, and indirectly creating 48,000 jobs.

The Intel report stated that its collaboration with Israeli vendors in the 2021-2022 fiscal year grew by over 25 percent, increasing from $1.7 billion to $2.2 billion. Intel attributes this exponential growth to the construction of its new chip factory – a project currently underway in Kiryat Gat in South Israel. 

The global computer chip industry has faced increased demand in the past year, with the global chip crisis leading to a new record in Intel’s export volume. Similarly, the recent chip industry trends led to Intel’s increased share of Israel’s GDP; this year, the company reported a year-over-year increase of $100 million to $8.1 billion.

Intel’s exports account for 1.7 percent of Israel’s total GDP. Within the high-tech industry, Intel accounts for 11 percent of Israeli hi-tech exports; additionally, 70 percent of Israeli hi-tech exports are chips created in Intel production facilities and 30 percent derive from its development centers.  

Outside of the chip industry, Intel has also given back significantly in Israel since establishing operations there. The company has invested $48 billion into the country, with $22 billion going to the acquisition of Israeli companies.