US semiconductor giant Intel has reached an agreement with the Israeli government. According to the agreement, an unprecedented investment will be made. Intel will invest $25 billion in Israel. Intel has previously invested in Israel. However, this was not seen. So what will this investment be for?
How will Intel invest $25 billion?
Israeli prime minister Benjamin Netanyahu It announced on Sunday that Intel will invest $25 billion in chip manufacturing facilities in the country. Expressing his joy, Netanyahu said, “I congratulate a tremendous success for the Israeli economy, the largest investment ever made by an international company in Israel!” used the phrases.
According to the Israeli Ministry of Finance, the factory will be located in the town of Kiryat Gat. Intel and Israel plan that the factory will open in 2027 and be operational until at least 2035. Intel will pay a tax rate increased from 5 percent to 7.5 percent, but will also receive a grant of 12.8 percent of the total investment, provided Chipzilla’s commitments are met.
Intel’s investment is not a first. The company has been in existence in Israel since 1974. The US tech giant has since become the country’s private sector employer and exporter. Approximately 12,000 of its 120,000 employees worldwide are located in Israel at facilities in the Haifa, Jerusalem, Petach Tikva and Kiryat Gat regions. According to Intel, $8.7 billion of Israeli exports account for 1.75 percent of the country’s gross domestic product.
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Intel’s website states that its two main Israel-based activities are development and production. Also on the site from the Kiryat Gat factory “the most advanced production facility” is mentioned as. An Intel spokesperson told The Reg:
“Israel is a global center of technical talent and innovation. One of Intel’s major global manufacturing and R&D centers. Since its founding in 1974, Intel Israel has played a pivotal role in Intel’s global success. Our intention to expand production capacity in Israel is tied to our commitment to meeting future production needs and supporting Intel’s IDM 2.0 strategy, and we appreciate the continued support.”
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