Two months after Intel corp. approved a $5 billion investment in development of its fab in Kiryat Gat, Minister of Economy and Industry Eli Cohen today announced that the company was considering a $9 billion investment in Israel. Cohen was speaking at a conference of the Israel Institute of Certified Public Accountants in Eilat.
Cohen stated, "We are encouraging top-level enterprises to go to the outlying areas. Intel's $5 billion investment in Israel is a mark of respect and we are devising a plan for a $9 billion follow-up investment."
In the framework of the investment in Israel approved by Intel in May, the company will receive various benefits from the state and will pay tax at a special 5% reduced rate according to a special track. Intel will also receive a NIS 700 million grant. The Israel Investment Promotion Center, the Ministry of Economy and Industry, and the Ministry of Finance decided two months ago to grant Intel an additional $700 million grant in exchange for additional investment in Israel.
In his speech, Cohen was referring to this additional investment, which is currently under consideration.
Intel said in response, "There is no concrete investment in Israel on the agenda right now in addition to the announcement of the plan for investing in upgrading Intel's fab in Kiryat Gat agreed on a month ago and the $6 billion investment plan for upgrading the fab agreed in 2014."
Published by Globes [online], Israel business news - www.globes-online.com - on July 3, 2018
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