Following the chip shortage that came as a result of coronavirus lockdowns, chip makers such as Intel decided they needed to diversify where they operate. Just months after agreeing to open
a site in Italy, the company is now announcing another investment, this time in Israel,
Bloomberg reports.
According to the report, the deal has been “agreed in principle” but is still regarded as “preliminary”. Many of the details of the deal are not known, however, it will see Intel invest $25 billion to create thousands of new jobs.
The site of the new factory is expected to be in Kiryat Gat, south of Tel Aviv. Operations will reportedly begin in 2027 and will continue until at least 2035. Intel will also pay more tax under the deal, up from 5% to 7.5%, however, it will receive a government grant that represents 12.8% of the total investment.
Commenting on the deal, Israel’s finance minister, Bezalel Smotrich said:
“Intel’s decision to invest in Israel is an expression of confidence in the Israeli economy at a time of global uncertainty. The unprecedentedly large investment will affect the growth of the Israeli economy in the coming years and advance quality employment.”
