Kahlon confirms Intel's NIS 40b Israel investment

Intel Photo: Mike Blake

The Finance Minister did not relate to "Globes" report that a 10% grant is likely to be given to the US chipmaker.

Israel's Minister of Finance Moshe Kahlon has confirmed "Globes" report yesterday that US chipmaker Intel plans investing an additional NIS 40 billion in Israel to build a new Kiryat Gat fab. Kahlon tweeted, "We have been working on this for a year and here are the results: Intel's global management has informed us this evening about their decision to invest another NIS 40 billion in Israel. This unprecedented decision will bring thousands of jobs to the south. This is massive news for everybody who cares about Israel, the Israeli economy and Israel's citizens."

However, Kahlon made no mention of the price the Israeli government is prepared to pay Intel in terms of a grant. Sources inform "Globes" that the Ministry of Finance is likely to offer Intel a 10% grant - NIS 4 billion, towards the construction of the Kiryat Gat plant.

In percentage terms this is more than double the 4% grant (NIS 700,000) that Intel is receiving for the NIS 18 billion expansion of the existing Kiryat Gat fab, which was agreed upon last year. In that deal, Intel also agreed to spend over NIS 3 billion on procurement in Israel for the new plant and hire 250 employees from outlying Israeli regions. Israel also extended the tax breaks that Intel receives from 2027 to 2030.

Published by Globes, Israel business news - en.globes.co.il - on January 29, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Intel Photo: Mike Blake
Intel Photo: Mike Blake
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