US-based semiconductor firm Intel is set to invest $25 billion in a new plant in Kiryat Gat, Israel, in what Prime Minister Benjamin Netanyahu called the country’s largest-ever foreign investment.
Plant Details
According to the Israeli finance ministry, Intel’s new facility will open by 2027 in the southern city of Kiryat Gat and operate until at least 2035. The deal is an “agreement in principle”, and the two sides will begin finalizing it in a process that is expected to take several weeks.
Benefits for Intel and Israel
As part of the agreement, Intel’s taxes to Israel will increase from five to 7.5 percent, while the company will receive a grant of 12.8 percent of its outlay. The grant is in line with Israel’s capital investment encouragement law. Intel has been operating in Israel since the 1970s and employs around 12,000 people in the country out of its global workforce of 130,000.
Israeli Prime Minister Benjamin Netanyahu said the new plant is “a great show of confidence in Israel’s economy” and demonstrates the strength of the country’s free and technological economy.
Intel’s Recent Acquisition
In 2017, Intel acquired Israel-based Mobileye, which develops technology for automated driving systems in vehicles, for just over $15 billion.
Conclusion
The investment by Intel in Israel is a major boost for the country’s economy and demonstrates the confidence that international firms have in its technological capabilities. The new plant will create jobs and promote economic growth in the region.
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