Intel to build a new chip manufacturing plant in Israel – Kommersant
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The American corporation Intel intends to invest $25 billion in the construction of a new plant for the production of microprocessors in Kiryat Gat, Israel. This was announced on Sunday, June 18, by Israeli Prime Minister Benjamin Netanyahu during a meeting of the country’s government, which was broadcast on television. His words are quoted by the world media, including the agency Reuters.
According to the Israeli prime minister, the Israeli government will invest $3.2 billion in the project. The plant is planned to be built by 2027, and it will operate at least until 2035. According to Mr. Netanyahu, Intel’s new investment, the largest foreign investment in the Israeli economy, will create thousands of new jobs. In turn, the Ministry of Finance of the country hastened to note that in accordance with the agreement on the construction of the plant, the Israeli division of the American company will pay an increased income tax rate – 7.5% instead of the current 5%.
Intel Israel reportedly did not directly confirm or deny the words of the Israeli prime minister. The statement, which was released to the media (available for revision), notes that “since its discovery in 1974, Intel Israel has played a key role in Intel’s global success.” The statement said, “Israel is a global center for technical talent and innovation and one of Intel’s most important centers for manufacturing and development… Our desire to expand manufacturing capacity in Israel is driven by our commitment to meet future needs… and we thank the Israeli government for its continued support.”
Experts remind that since coming to Israel, Intel Corporation has become the largest private employer in the country. It directly employs 11.7 thousand people. Indirectly, the corporation provides jobs for about 42 thousand people.
Last week, Intel Israel reported that in 2022 its product exports amounted to $8.7 billion, which corresponds to 1.75% of Israel’s total GDP and 5.5% of the country’s high-tech exports.
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