Intel marks 40 years in Israel

The company's exports totaled $35 billion in the past 40 years and $3.8 billion in 2013.

Intel Israel Ltd. is opening is annual event with celebrations to mark 40 years of operations in the country. Intel Israel's figures are as impressive as always, whether in terms of 40 years or for 2013. The company's exports totaled $35 billion in the past 40 years and $3.8 billion in 2013.

Intel Corporation has invested $10.8 billion in its fabs and development centers in Israel over the past 40 years. These fabs and development centers currently have 9,800 employees, making Intel Israel the country's leading private employer, and they have produced one billion silicon processors for Intel Corporation.

"Without innovation in Israel, the company has no right to exist," says Intel Israel president Mooly Eden. Intel Israel's achievements include the 8088 and Pentium MMX processors, as well the Centrino processor, the development of which Eden was responsible.

Intel Israel's exports in 2013 were slightly less than in 2012. "Even as we develop and are at the spearhead of fab technology," says Eden. "we're constantly moving on to the next technology. You produce the products because you have to reach market, so you don't include in your books the fab's initial product run and we don’t recognize it." This is why linear growth, he says, is slightly above the company's exports in 2012. Intel Israel has 4,400 employees at its fab and 5,400 at its development center.

Intel Israel is holding its annual press conference against the backdrop of pending negotiations with the government over a huge grant to build a new fab with new technology in Kiryat Gat. Intel will reportedly submit its official request for the grant in a few months, and the Ministry of the Economy and the Ministry of Finance will consider whether to award the grant, which could reach $900 million, spread over several years.

Intel is also at a crossroads over its strategic development. Without question, the company missed change in direction in the computer industry, where growth is mostly not in PCs, where Intel dominates, but in mobile devices, especially tablets. Intel is still not there, but it plans an aggressive entry into the market this year and to reach sales of 40 million units based on its processors, about 15% of the projected market in 2014.

Commenting on the feeling that Intel is lagging behind market developments, Eden told "Globes", "There have been several revolutions. We didn’t respond fast enough, and now that there is a new revolution - wearable technology - the expectation is that we will respond more quickly. The fact that we have to close gaps is not part of Intel's DNA. We good in offense, not defense, and we should run faster in the next two years, and show that we're not just closing gaps, but that we're leading new trends, such as wearable technology and security."

Published by Globes [online], Israel business news - - on January 26, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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