Israel approves NIS 700m Intel grant

Intel Kiryat Gat
Intel Kiryat Gat

The Knesset Finance Committee has approved the grant as part of a planned $5 billion investment by Intel to expand its Kiryat Gat fab.

Israel's Knesset Finance Committee has approved a NIS 700 million grant for Intel Corp in return for a planned $5 billion expansion of its production operations at the Kiryat Gat fab. Intel submitted its plans for the Kiryat Gat expansion in May.

Intel is Israel's largest private employer and biggest exporter. In 2017, Intel Israel exported $3.6 billion worth of goods, 8% of all Israel's high-tech exports. 

In exchange for the NIS 700 million grant, the Israeli government expects Intel to hire 250 new employees and make NIS 2.1 billion in Israeli procurement.

Last week, Intel SVP and general manager manufacturing and operations said, "Looking ahead, we are now in the early planning phase for manufacturing site expansions in Oregon, Ireland and Israel, with multi-year construction activities expected to begin in 2019."

Israel's Minister of Economy and Industry Eli Cohen told the "Globes" Business Conference in Jerusalem last week that Intel may decide to expand its Israeli operations beyond its $5 billion commitment for 2019. "Intel will make, in my estimation, another significant investment in the coming year," he said.

Published by Globes, Israel business news - - on December 25, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Intel Kiryat Gat
Intel Kiryat Gat
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