Intel to invest $6b to upgrade Kiryat Gat fab

Intel will submit an investment plan and could receive a NIS 750 million government grant.

Intel Corp. (Nasdaq: INTC) will invest $5-6 billion in upgrading its Kiryat Gat fab sources inform "Globes." The company is set to file an investment plan for the upgrade with the Ministry of Economy's Investment Center and can expect to receive a grant of about 5% of its investment - NIS 750 million.

At this stage the company has not officially disclosed details about the size of the investment, timetables or the type of technological upgrade proposed.

Intel Israel currently has four development centers in Haifa, Yakum, Petah Tikva and Jerusalem and two production plants in Kiryat Gat and Jerusalem. The company, which began operating in Israel in 1974, and set up its first development center undrer the stewardship of Dov Frohman, today has 9,855 employees.

Total production of Intel Israel is about $1 billion annually and $10 billion over the past decade. Over 40 years, Intel has invested $10.8 billion in Israel in its development and production centers

Intel VP and Intel Israel CEO Maxine Fassberg said, "In 40 years, Intel has exported goods worth $35 billion mostly from its production centers in Kiryat Gat and Jerusalem. In 2013 the Intel plant in Kiryat Gat won the Intel Quality Award for its special performance. Intel is committed to continue its run of quality achievements resulting from its Kiryat Gat fab."

Finance Minister Yair Lapid said, "We will continue to work to promote investments in Israel's industrial development which is a vote of confidence in Israel's economy. These investments create thousands of jobs directly and tens of thousands of jobs indirectly for Israel's middle class."

Published by Globes [online], Israel business news - - on April 30, 2014

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

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