Intel Israeli procurements worth $10b in past decade


80% of what Intel buys in Israel is from small and medium-sized businesses.

Giant US chip manufacturer Intel reports that it has spent $10 billion on procurement in the Israeli market over the past decade. Figures provided by the company show that 80% of its purchases in Israel were from small and medium-sized businesses, and it spends an annual average of $1 billion on procurement from 1,000 different Israeli suppliers. Half of this $10 billion total has been recognized as part of the reciprocal procurement undertaken by Intel as a condition for the grants and benefits it received over the years from the Ministry of Economy and Trade Investment Promotion Center.

Intel says that its procurement is six times as much as its obligations under its agreements with the state. The company adds that its procurement personnel helped and trained local suppliers to meet its stringent standards, which enabled them to improve their businesses, thereby creating new jobs in the economy and enabling them to expand to new markets. According to Intel, these suppliers exported $2 billion in goods and services over the past decade.

"These goods were bought by other companies in Israel and overseas, not by us; some of those companies even compete with Intel," said Intel International director of technologies, suppliers, and industrial development Ari Komeran. "Intel's huge volume of procurement from Israeli suppliers, and its reciprocal procurement, highlight the major economic contribution of Intel's manufacturing activity to the Israeli economy."

Figures provided by Intel show that 80% of its procurement in Israel is used for its processor manufacturing activity, mostly at the company site in Kiryat Gat. The other 20% is designated for the company's research and development in Israel and other countries. Intel has 1,100 employees in Israel, and right now is completing the construction of its upgraded fab in Kiryat Gat. The company's investment in upgrading this plant is projected to reach $7 billion. When the work is completed, the Kiryat Gat fab will be one of Intel's most advanced facilities in the world.

Published by Globes [online], Israel business news - - on March 31, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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