Israel Okays Grant for Intel Chip Plant

Filed under: — By Aviran Mordo @ 2:08 am

Israel ’s government on Monday approved a grant of $525 million for an investment by Intel Corp. to build a new chip plant in Israel , the Ministry of Industry, Trade and Labour said

The ministry said in a statement the grant represents 12.5 percent of the investment in the new plant, which is expected to be around $4.4 billion over four years. It said the investment was the largest ever by an industrial company in Israel.

The ministry said the total investment would reach $5 billion, the bulk of which would go toward Intel’s new plant with the rest going to upgrade its current Fab 18 plant.

A study commissioned by the ministry found that the project would contribute a net $450 million to Israel ’s economy.

Intel, the world’s top chipmaker, was expected to hire 4,400 new workers for the new Fab 28 plant in the southern town of Kiryat Gat, the site of an existing chip plant that employs about 3,500 people, the ministry said.

Intel has yet to officially confirm whether it will build a new plant in Israel.

Source: eWeek


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