Israeli Prime Minister Benjamin Netanyahu said that US chipmaker Intel will invest $25 billion in a new factory there, calling it the nation’s largest-ever foreign investment.
According to the Finance Ministry, the new production line in the Israeli city of Kiryat Gat is anticipated to start up in 2027, run least till 2035, and generates thousands of jobs. It also stated that under the terms of the agreement, Intel will pay a 7.5% tax rate, up from the existing 5%.
Over the course of its nearly five decades of operations in Israel, Intel says that the company has grown to be the nation’s largest privately held employer and exporter. According to reports, the company dominates the local electronics and information industry.
In 2017, Intel paid $15 billion to acquire Israel-based Mobileye Global, which specialises in creating and implementing cutting-edge driver assistance technologies. The US tech firm made Mobileye publicly available last year.
The agreement for the plant in Kiryat Gat, according to Netanyahu, is “a tremendous achievement for the Israeli economy – 90 billion shekels – the largest investment ever by an international company in Israel.”
According to a statement from Intel, its activities in Israel “played a crucial role” in the company’s success on a global scale. It further said, “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.”
