Israel awards Intel $300m grant

Intel

Minister of Economy: Without the grant, Intel's investment would go elsewhere.

This morning, the Ministry of the Economy and the Ministry of Finance approved the plan to award US semiconductor giant Intel a grant of $300 million over five years. Intel is due to make investments in Israel to the tune of some NIS 22 billion over the coming years in upgrading its Kiryat Gat plant.

In addition to the grant, Intel will benefit from a reduced Companies Tax rate of 5% for ten years. The company has committed to extensive reciprocal procurement in Israel over the next few years, amounting to an estimated NIS 2 billion.

Minister of the Economy Naftali Bennett told "Globes", "We approved the biggest investment in the country's history. Without this grant, Intel would have carried out this large investment in other places, such as in Ireland or the US, where the red carpet had already been rolled out for it."

The new plant will employ 1,000 people and the Ministry of Economy said that the new plant would create an additional 2,500 jobs indirectly.

Published by Globes [online], Israel business news - www.globes-online.com - on September 22, 2014

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

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