Netanyahu: Intel to invest $25 billion in new chip plant in Israel
Netanyahu: Intel to invest $25 billion in new chip plant in Israel
Contrary to the announcement by Netanyahu and the Ministry of Finance, Intel has not committed to a new $25 billion investment, but rather to another $15 billion on top of the $10 billion investment it announced in 2018. Intel Israel didn't comment directly on Netanyahu's announcement or confirm any of the details
UPDATED: Semiconductor giant Intel is expected to establish a new factory in Israel with a significant investment of about $25 billion, Israeli Prime Minister Benjamin Netanyahu said on Sunday. Around $3.2 billion of the budget is set to be provided by Israel.
Contrary to the announcement by Netanyahu and the Ministry of Finance, Intel has not committed to a new $25 billion investment, but rather to another $15 billion on top of the $10 billion investment it announced in 2018
Intel Israel didn't comment directly on Netanyahu's announcement or confirm any of the details, saying: "Israel is a global center of technical talent and innovation and one of Intel's significant global manufacturing and R&D centers. Since its establishment in 1974, Intel Israel has played a crucial role in Intel's global success. Our intention to expand manufacturing capacity in Israel is driven by our commitment to meeting future manufacturing needs and supporting Intel's IDM 2.0 strategy, and we appreciate the continued support of the Israeli government."
According to the Ministry of Finance, Intel plans to complete the new factory in Kiryat Gat, which is expected to create thousands of additional jobs, by 2027, with plans to operate the plant until at least 2035. As part of the deal, Intel will see its tax rate increase from 5% to 7.5%.
The site in Kiryat Gat is set to become one of Intel's new 'megafab' complexes, alongside similar projects in the U.S. and Europe.
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Intel Israel revealed last week that it posted record exports of $8.7 billion in 2022, constituting 1.75% of Israel’s entire GDP and 5.5% of all Israeli high-tech exports. The figures were revealed in Intel Israel's Corporate Responsibility Report, which the company published for 2022-2023. In addition, Intel Israel purchased $3.5 billion in goods and services from Israeli businesses, representing a growth of 60%, up from $2.2 billion in 2021.
Intel directly employs 11,700 employees in Israel, at its three R&D centers - in Haifa, Petah Tikva, and Jerusalem as well as at its manufacturing center in Kiryat Gat. In terms of indirect employment, Intel is currently responsible for creating indirect positions for approximately 42,000 workers in Israel.
