US chipmaker Intel Corp will spend $US25 billion ($A36 billion) on a new factory in Israel, Prime Minister Benjamin Netanyahu says, calling it the largest international investment in the country.
The factory in Kiryat Gat was due to open in 2027, to operate through to 2035 at least and to employ thousands of people, Israel’s Finance Ministry said on Sunday, adding that under the deal Intel would pay a 7.5 per cent tax rate, up from the current 5 per cent.
During its almost five decades of operations in Israel, Intel has grown to become the country’s largest privately held employer and exporter and a leader of the local electronics and information industry, according to the company’s website.
In 2017, Intel bought Israel-based Mobileye Global Inc , which develops and deploys advanced driver-assistance systems, for $US15b. Intel took Mobileye public last year.
Announcing the deal in televised remarks to his cabinet, Netanyahu called it “a tremendous achievement for the Israeli economy – 90 billion shekels ($US25 billion) – the largest investment ever by an international company in Israel”.
There was no immediate comment from Intel in Israel.
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