Expanding its Kiryat Gat production plant, USA based semiconductor giant Intel Corp. is set to invest $5 billion through 2020 in Israel.
According to the Finance Ministry in an email statement said that Intel is set to buy over NIS 3 billion ($818.22 million) worth of products from local suppliers and is set to add 250 people.
Since the implementation of US President Donald Trump’s tax reform, this investment is the first significant investment by a multinational in Israel and is also an important strategic investment for the nation.
Intel is expected to get a 5 percent tax rebate until the end of 2027 and a NIS 700 million ($190.9 million) government grant as a part of the investment plan and if the firm decides on further strategic investment to significantly upgrade its plant, then Intel will be eligible for additional NIS 700 million government grants ($190.9 million)
The statement said that the grants main purpose was to:
“Incentivize the firm to make the future investment, which is supposed to be significantly higher than past investments made by the company and higher than the current investment.”
Receiving notification about the investment plan Intel vice president and general manager of Intel Israel, the Finance Minister Moshe Kahlon said the following:
“After two years of intensive work, the management of the global company accepted our proposal to invest another NIS 18 billion in expanding the company’s activity in Israel. This is tremendous news for the economy, which expresses confidence in the country and positions us as a leading global economy.”
Intel has had operations in Israel since 1974 and has made cumulative investments and acquisitions of about $35 billion in Israel and is the largest private sector employer in the high tech industry employing 11000 workers.
About Intel Corp.
Founded in 1968, Intel Corp. designs, manufactures, and sells computer, networking, data storage, and communication platforms worldwide. Headquartered in the US, Intel Corporation operates through Client Computing Group, Data Center Group, Internet of Things Group, Non-Volatile Memory Solutions Group, Programmable Solutions Group, and All Other segments. Employing 102700 employees worldwide, Intel’s platforms are used in notebooks, desktops, and wireless and wired connectivity products; enterprise, cloud, and communication infrastructure market segments; and retail, automotive, industrial, and various other embedded applications. The company offers microprocessors, and system-on-chip and multichip packaging products.