It will add thousands of jobs
Intel has agreed to build a new factory in Israel as part of the US semiconductor giant and its fellow chipmakers to diversify production.
The preliminary deal was announced by Israel’s finance ministry and Prime Minister Benjamin Netanyahu on Sunday. Intel confirmed “the company’s intention to expand manufacturing capacity in Israel,” where it already operates.
Israel’s Biggest Investment: Intel to Spend $25B on New Silicon Wafer Plant
The facility will be for the production of silicon wafers, a segment in which Israel is already one of Intel’s four main suppliers, according to a person familiar with the plans and not authorized to speak publicly.
Benjamin Netanyahu valued the deal at $25 billion, which he said was the largest foreign investment in Israel and “an expression of confidence” in the country’s economy.
The project will add thousands of jobs to the nearly 12,000 that Intel Israel already has, according to Israeli officials. The new plant, which will join the existing one in Kiryat Gat, south of Tel Aviv, should be operational by 2027, the ministry said. As part of the agreement, Intel will pay tax in Israel at a rate of 7.5% instead of the current 5%.
