Intel to Invest $25 Billion in Israel for New Chipset Factory
Written by Sanjay Kumar
Intel
Semiconductor corporation
- Founders: Gordon Moore, Robert Noyce, Arthur Rock
- Headquarters: Santa Clara, California, United States
- CEO: Patrick P. Gelsinger (15 Feb 2021–)
- Revenue: 6,305 crores USD (2022)
- Founded: 18 July 1968, Mountain View, California, United States
- Chairperson: Omar Ishrak
In a groundbreaking move, U.S. chipmaker Intel Corp has announced plans to invest a staggering $25 billion in a new factory in Israel. Prime Minister Benjamin Netanyahu hailed this landmark decision, describing it as the largest-ever international investment in the country’s history. The factory, set to open its doors in Kiryat Gat by 2027, is expected to remain operational until at least 2035, providing employment opportunities for thousands of Israelis, according to Israel’s Finance Ministry.
This investment comes as Intel aims to expand its manufacturing capabilities and meet future demands in the semiconductor industry. Israel, known for its thriving technology sector, has been an essential hub for Intel since the company’s establishment in the country nearly five decades ago. With this latest investment, Intel solidifies its position as Israel’s largest privately held employer and exporter, further enhancing its role as a leader in the local electronics and information industry.
The agreement between Intel and the Israeli government also includes an adjustment in the tax rate. Under the terms of the deal, Intel will pay a 7.5% tax rate, a slight increase from the current 5%. The Israeli government expressed its support and appreciation for Intel’s ongoing commitment to the country’s economy, recognizing the vital role the company’s operations have played in its global success.
Intel’s involvement in Israel goes beyond manufacturing. In 2017, the company acquired Mobileye Global Inc, an Israeli-based firm specializing in advanced driver-assistance systems, for a staggering $15 billion. Last year, Intel took Mobileye public, demonstrating its dedication to fostering innovation and technological advancements within the country.
Prime Minister Netanyahu, during his televised announcement, lauded the deal, stating, “This is a tremendous achievement for the Israeli economy – 90 billion shekels ($25 billion) – the largest investment ever by an international company in Israel.” He emphasized the significance of this investment in boosting Israel’s economic growth and job creation, solidifying the country’s position as a global technology powerhouse.
With the new factory set to become operational in a few years, Israel eagerly awaits the immense economic benefits and employment opportunities it will bring. Intel’s unwavering commitment to the nation highlights the attractiveness of Israel’s technology landscape, as well as the country’s potential for further growth and innovation in the semiconductor industry.
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