The construction of a chip manufacturing facility by Intel would represent the largest foreign investment in Israel’s history, Prime Minister Benjamin Netanyahu declared on Sunday.
According to the Finance Ministry, the American semiconductor manufacturer will invest $25 billion on a third facility in Kiryat Gat, in the south of the nation, that will debut in 2027.
According to the agreement, Intel would pay a tax rate of 7.5% rather than 5%, the Finance Ministry noted.
‘This is an expression of great confidence in the Israeli economy and exactly reflects the strength of the free economy that we have built here and the technological economy that we are developing here,” the prime minister said.
In 2022, Intel Israel exported a record $8.7 billion, or 1.75 percent of Israel’s GDP, and 5.5% of its high-tech products, according to the company’s Corporate Responsibility Report, which was published earlier this month.
Around 10,000 people are employed directly by the corporation in Israel, while another 30,000 are employed indirectly.
The $10 billion factory being built in Kiryat Gat by the chip manufacturing behemoth is in addition to the one that is already operational there.
In a statement, Intel claimed that its activities in Israel “played a crucial role” in its success on a worldwide scale.
“Our intention to expand manufacturing capacity in Israel is driven by our commitment to meeting future manufacturing needs, and we appreciate the continued support of the Israeli government,” the company said.