The US chip manufacturer apparently wants to invest 25 billion US dollars in a factory in Israel.
(Photo: Reuters)
Jerusalem According to Prime Minister Benjamin Netanyahu, the US chip manufacturer Intel will build a new $25 billion factory in Israel. This is the largest international investment in the country to date, Netanyahu said on Sunday.
The factory in Kiryat Gat is scheduled to open in 2027 and will employ thousands, according to the Israeli Ministry of Finance. A tax rate of 7.5 percent was agreed for Intel, which is above the current level of five percent. Intel was initially unable to comment on the information from Israel.
The US group is currently also negotiating the construction of a new chip factory in Magdeburg. The final details are to be negotiated over the weekend before Intel boss Pat Gelsinger is to sign the paper during his planned visit to the Federal Chancellery on Monday.
The big question is whether and under what conditions the subsidy volume will be increased. Originally, 6.8 billion euros were promised, but an increase in the funding amount to around 10 billion euros is now being discussed. The Magdeburg plant was originally supposed to cost 17 billion euros, but now there is talk of 20 billion euros due to increased construction costs.
Intel gave the go-ahead for a project in Poland last Friday. A factory for testing and assembling processors is to be built in Wroclaw for $4.6 billion.
“Poland was just a bit hungrier to get the bid,” said CEO Gelsinger. Several states had offered themselves as a location. Polish Prime Minister Mateusz Morawiecki called the factory “the largest greenfield investment in Poland’s history”. The federal government sees no competition in this with the plant in Magdeburg.
More: Federal government and Intel shortly before agreement – subsidies for chip factory are to rise to 9.9 billion euros