Prime Minister Benjamin Netanyahu announced on Sunday that U.S. chipmaker Intel Corp plans to invest an unprecedented $25 billion in a new factory in Israel. This landmark deal represents the largest-ever international investment in the country, according to Netanyahu.
The upcoming factory, located in Kiryat Gat, is scheduled to commence operations in 2027 and continue until at least 2035. It is expected to employ a substantial workforce, creating employment opportunities for thousands of individuals, as stated by Israel’s Finance Ministry. Under the terms of the agreement, Intel will contribute to the Israeli economy by paying a 7.5% tax rate, which is an increase from the current rate of 5%, as informed by the ministry.
With nearly five decades of presence in Israel, Intel has emerged as the largest privately held employer and exporter in the country. The company has played a pivotal role in shaping the local electronics and information industry, as noted on its official website. In 2017, Intel acquired Mobileye Global Inc, an Israel-based firm specializing in advanced driver-assistance systems, for $15 billion. Last year, Intel took Mobileye public, further showcasing its commitment to the Israeli market.
During a televised cabinet meeting, Prime Minister Netanyahu hailed the investment as a monumental accomplishment for the Israeli economy, highlighting the substantial amount of 90 billion shekels ($25 billion) committed by an international company in Israel.
In a statement, Intel emphasized the significant role played by its Israel operations in the company’s global success. The expansion of manufacturing capacity in Israel reflects Intel’s dedication to meeting future manufacturing demands. The company expressed gratitude for the ongoing support received from the Israeli government.
