Intel To Spend $25 Billion On New Plant In Israel

The official said Sunday that US chipmaker Intel will invest $25 billion in a new plant in Israel, calling it the country’s single greatest foreign investment.

According to Israel’s finance minister, the agreement in principle would see the semiconductor manufacturer develop the plant in the southern city of Kiryat Gat, which would open by 2027 and operate at least until 2035.

The finance ministry said in a statement that as part of the agreement, Intel’s taxes to Israel would be raised from 5 percent to 7.50 percent.

According to Israel’s capital investment encouragement law, Intel would receive a grant of 12.8 percent of its outlay in exchange.

Prime Minister Benjamin Netanyahu stated that the new plant will be Israel’s largest investment.

“This is a great show of confidence in Israel’s economy and it demonstrates the strength of the free economy we built here and the technological economy developing that is developing here”, Prime Minister Benjamin Netanyahu added.

“The two parties would begin concluding the agreement in a process that would take many weeks”, the ministry added.

Intel’s spokesperson in Israel had no immediate reaction.

According to the finance ministry, Intel has been working in Israel since the 1970s, with development centres and a manufacturing plant employing approximately 12,000 workers out of the company’s global workforce of 130,000.

Intel paid slightly more than $ 15 billion for Israel-based Mobileye, which develops technology for automated driving systems in automobiles.

Also read: IMD Issues Rain Advisory For Northeast India Till June 20