Intel To Invest Record $25 Billion In Israel: Benjamin Netanyahu
Prime Minister Netanyahu emphasised that this marks the largest investment ever made by an international company in Israel.
In a significant development for Israel's economy, Prime Minister Benjamin Netanyahu revealed on Sunday that Intel, the renowned American chipmaker, will allocate approximately $25 billion for the establishment of a new factory in the country. This investment is expected to be the largest international venture in Israel to date. The planned factory, located in Kiryat Gat, is set to commence operations by 2027 and continue until at least 2035, providing employment opportunities for thousands of individuals, as stated by Israel's Finance Ministry.
As part of the agreement, Intel will be subject to a 7.5 per cent tax rate, an increase from the current rate of 5 per cent, as specified by the ministry.
Intel's substantial presence and successful operations in Israel over the past five years have solidified its position as the country's largest privately held employer, exporter, and prominent leader in the local electronics and information industry, as noted on the company's official website. In 2017, Intel acquired Mobileye Global, an Israeli company specialising in the development and deployment of advanced driver-assistance systems, for $15 billion. Subsequently, Intel took Mobileye public last year, further expanding its influence in Israel.
During a televised announcement to his cabinet, Prime Minister Netanyahu hailed the deal as a monumental achievement for the Israeli economy, emphasising that it marks the largest investment ever made by an international company in Israel, amounting to 90 billion shekels ($25 billion).
Intel echoed its commitment to the Israeli market and acknowledged the instrumental role played by its operations in the country in the company's global success. In a statement, Intel expressed its intention to expand manufacturing capacity in Israel to meet future needs while expressing gratitude for the continuous support of the Israeli government.
The establishment of the new Intel factory and the substantial investment signifies a major boost to Israel's economy, promising job creation, and technological advancements, and further solidifying Israel's position as a key player in the global technology landscape. The collaboration between Intel and Israel is poised to drive innovation and contribute to the long-term growth and prosperity of both parties.
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