Intel Corporation (Nasdaq: INTC) has applied for a $500-700 million grant from the Investment Promotions Center. In a press release, the Ministry of Industry, Trade and Labor said, "Intel has filed a request with the Investment Promotions Center for its $4.8 billion comprehensive expansion and technology upgrade plan for Fab 28 in Kiryat Gat." Intel normally asks for a grant amounting to 12-15% of its planned investment.
Intel promises to hire 1,300 new employees at the fab, boosting its workforce to 4,400, when the upgrade is completed in 2014.
Intel plans to upgrade Fab 28 for the production of next-generation integrated circuits on silicon wafers with 15-nanometer technology. The Fab is currently being upgraded to 22-nanometer technology, and it is scheduled to begin production by the end of the year.
In January 2011, the Investment Promotions Center approved a $230 million grant for Intel for this 22-nanometer upgrade, after heated public debate, during which Intel threatened to relocate the production elsewhere if the grant was not approved.
Minister of Industry, Trade and Labor Shalom Simhon appointed ministry director general Sharon Kedmi to review Intel's application. Simhon said that he considers the grant application as a vote of confidence by Intel in its Israeli operations, and he hopes that it will mean the expansion of operations in the periphery.
Published by Globes [online], Israel business news - www.globes-online.com - on June 12, 2011
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