Intel to invest $25 bn in new Israel plant: government

0
intel
Credit: Unsplash/CC0 Public Domain

US chip giant Intel will spend $25 billion on a new plant in Israel, officials said Sunday, with Prime Minister Benjamin Netanyahu calling it the country’s single largest foreign investment.

The “agreement in principle” would see the semiconductor firm build the facility in southern city Kiryat Gat that would open by 2027 and operate at least until 2035, Israel’s finance ministry said.

As part of the deal, Intel’s taxes to Israel would rise from five to 7.5 percent, the finance ministry said in a statement.

Intel in return would receive a grant of 12.8 percent of its outlay, the ministry said, in line with Israel’s capital investment encouragement law.

Netanyahu said the new plant would constitute “the largest investment in Israel”.

“This is a great show of confidence in Israel’s economy, and shows the strength of the free economy we built here and the technological economy developing here,” the Israeli leader said.

The two sides would begin finalizing the deal in a process expected to take a number of weeks, according to the ministry.

A spokesman for Intel in Israel had no immediate comment.

Intel has been operating in Israel since the 1970s with development centers and a production site that employ some 12,000 people out of the company’s global work force of 130,000, the finance ministry said.

In 2017, Intel acquired Israel-based Mobileye, which makes technology for automated driving systems in vehicles, for just over 15 billion dollars.

© 2023 AFP

Citation:
Intel to invest $25 bn in new Israel plant: government (2023, June 18)
retrieved 19 June 2023
from https://techxplore.com/news/2023-06-intel-invest-bn-israel.html

This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no
part may be reproduced without the written permission. The content is provided for information purposes only.

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Technology News Click Here 

Read original article here

Denial of responsibility! Rapidtelecast.com is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
Leave a comment