Intel Israel Ltd. representatives today submitted to the Investments Promotion Center at the Ministry of the Economy an official application for a grant in exchange for a huge investment to upgrade the company's fab in Kiryat Gat. In exchange for a $6 billion investment, Intel Israel expects to receive from the government a NIS 1.4 billion grant and a reduced companies tax rate of just 5%.
Agreements in principle reached in unofficial negotiation in the past few months between representatives of the Ministry of Finance and the Ministry of the Economy and the heads of Intel Israel resulted in the company submitting the official application. Upon receipt of the application from Intel Israel CFO Aviad Avni and incentives manager Gili Hacohen, Investments Promotion Center director Nahum Itzkovich announced that he would expedite the bureaucratic procedures as much as possible to promote Intel's upgrade plan for the southern fab.
As part of the approval processes for Intel's benefits, the Investments Promotion Center will make several demands of Intel Corporation (Nasdaq: INTC), including hiring 1,000 new employees in Israel, investing in higher education, and making extensive reciprocal procurements in Israel.
Intel's new investment will reportedly include upgrading its fab by 2017 to become the company's most advanced fab for the production of 10-nanometer technology components.
Published by Globes [online], Israel business news - www.globes-online.com - on May 4, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014