Prime Minister Benjamin Netanyahu said on Sunday that chipmaker Intel Corporation (INTC.O) will invest $25 billion in a new factory in Israel. Netanyahu referred to this as the largest foreign investment the country has ever received from outside investors.
The factory in Kiryat Gat is expected to begin operations in 2027, to continue doing so at least through 2035, and will provide employment for thousands of people, according to the Israeli Finance Ministry. As part of the agreement, Intel’s tax rate will increase from its existing level of 5% to 7.5%, as stated by the ministry.
According to the website of the company, Intel has been operating in Israel for almost to half a century, during which time it has expanded to become the largest privately held employer and exporter in the country, as well as a leader in the local electronics and information industry.
Related;Elon Musk forms X.AI artificial intelligence company
Mobileye Global Inc (MBLY.O), situated in Israel and responsible for the development and deployment of advanced driver-assistance technologies, was acquired by Intel for $15 billion in the year 2017. The previous year, Intel brought Mobileye to the public market.
Netanyahu termed the transaction “a tremendous achievement for the Israeli economy – 90 billion shekels ($25 billion) – the largest investment ever by an international company in Israel” when he made the announcement to his cabinet via broadcast remarks.
Intel has issued a statement in which it claims that its operations in Israel have “played a crucial role” in the company’s success on a worldwide scale.
“Our intention to expand manufacturing capacity in Israel is driven by our commitment to meeting future manufacturing needs… and we appreciate the continued support of the Israeli government,” the statement read. “Our intention to expand manufacturing capacity in Israel is driven by our commitment to meet future manufacturing needs.”
Follow our socials Whatsapp, Facebook, Instagram, Twitter, and Google News.
