Intel seeks $300-400m grant for expansion

The grant equals 10% of Intel's planned investment in upgrading the Micron fab in Kiryat Gat or building a new one.

While the future of 1,300 Micron Technology Israel Ltd. employees is unclear, Intel Corporation (Nasdaq: INTC) has proposed to the government to employ most of them and upgrade Micron's fab, or to build a new fab in Kiryat Gat. In either case, Intel Israel would employ thousands more people. The condition is a grant of $300-400 million.

The grant that Intel is seeking from the government equals 10% of the company's planned investment in Israel, either for the building of a new fab or for upgrading Micron's fab. Intel Israel's president is Mooly Eden and its plant manager is Maxine Fassberg.

In December 2012, Micron Israel management notified its employees in Kiryat Gat that the company had decided to transfer production out of Israel. The fab was due to stay in production until early 2015, but if the company cannot find a buyer for the production lines or another solution, 1,300 people will lose their jobs.

Published by Globes [online], Israel business news - www.globes-online.com - on June 9, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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