According to officials, US semiconductor giant Intel will invest $25 billion in a new facility in Israel. Prime Minister Benjamin Netanyahu called it the nation’s single greatest foreign investment.
According to a “agreement in principle” between the semiconductor company and the city of Kiryat Gat in the south, the facility would be built, open for business by the year 2027, and run at least until the year 2035.
According to a statement from the finance ministry, as part of the agreement, Intel’s taxes to Israel will increase from five to 7.5 percent.
According to the ministry, Intel would receive a subsidy equal to 12.8% of its expenditure in exchange, in accordance with Israeli statute encouraging capital investment.
Netanyahu mentioned the new plant would include “the largest investment in Israel”.
“This is a great show of confidence in Israel’s economy, and shows the strength of the free economy we built here and the technological economy developing here,” the Israeli leader averred.
According to the government, the two parties would start concluding the agreement, a process that was anticipated to take several weeks.
No immediate comments were available from an Intel spokesman in Israel.
Out of the 130,000 employees worldwide, Intel has employed about 12,000 in Israel since the 1970s through development centres and a production facility, according to the finance ministry.
For slightly over $15 billion, Intel purchased the Israeli company Mobileye in 2017, which develops technology for automated driving systems in automobiles.
