To be built in Kiryat Gat, the new chip manufacturing facility, which is expected to generate thousands of jobs, is scheduled to commence in 2027 and operate through 2035 at least
Intel to build new chip manufacturing plant in Israel with an investment of $25bn. (Credit: Intel Corporation)
American semiconductor company Intel has signed an agreement in principle with the Israeli Finance Ministry to make an investment of NIS90bn ($25bn) in a chip manufacturing plant in Israel.
Under the terms of the investment agreement, Intel will pay a tax rate of 7.5%, an increase from the 5% that the company pays the Israeli government currently, reported Reuters.
To be located in Kiryat Gat, the new chip manufacturing facility is scheduled to commence in 2027 and will operate through 2035 at least.
The facility is expected to generate thousands of jobs.
According to Israeli Prime Minister Benjamin Netanyahu, the new facility will leverage the most advanced technology in the world with the “huge and unprecedented investment” by Intel.
Israel Prime Minister Benjamin Netanyahu at a cabinet meeting said: “$25 billion will be invested in this plant, i.e. NIS 90 billion. This is the largest investment ever in the State of Israel.
“This is an expression of great confidence in the Israeli economy and exactly reflects the strength of the free economy that we have built here, and the technological economy that we are developing here.”
Earlier this month, Intel’s fully owned subsidiary Intel Overseas Funding offered to sell 35 million shares of Class A common stock worth $1.5bn in Israel-based self-driving tech firm Mobileye Global.
Separately, Intel has announced its plans to build a new advanced semiconductor assembly and test facility in an area near Wrocław, Poland with an investment of $4.6bn.
The new Polish facility is projected to address the critical demand for assembly and test capacity by 2027. It will also support about 2,000 Intel employees.