2023-06-18 13:10:00
The American semiconductor manufacturer Intel Corp will spend 25 billion dollars to build a new chip factory in Israel, Israeli Prime Minister Benjamin Netanyahu said on Sunday, who specified that it is the largest investment ever made in Israel. Archyde.com.
Benjamin NetanyahuPhoto: RONEN ZVULUN / UPI / Profimedia
The future Intel factory in Kiryat Gat would be inaugurated in 2027 and will create several thousand jobs, the Ministry of Finance of Israel also stated, adding that according to the agreement agreed with Intel, the company will pay a share of tax of 7.5%, up from the current rate of 5%.
In the nearly five decades since it has been operating in Israel, Intel has become Israel’s largest private employer and exporter as well as the leader of the local IT industry.
Intel has 11,700 employees directly in Israel, at its three R&D centers in Haifa, Petah Tikva and Jerusalem, as well as its manufacturing plant in Kiryat Gat. In 2022, Intel Israel had record exports of 8.7 billion euros, which is 1.75% of the entire GDP and 5.5% of Israel’s high-tech exports.
On Sunday, announcing the deal for the new chip factory, Prime Minister Benjamin Netanyahu said it was “an extraordinary achievement for the Israeli economy – 90 billion shekels ($25 billion) – the largest investment ever made by a international company in Israel”.
The Israeli prime minister’s announcement comes just two days following Intel Group said it would invest up to $4.6 billion in a new semiconductor factory and test facility near Wrocław, Poland, which is set to become operational. in 2027 as part of Europe’s $88 billion investment plan to ramp up its chip production.
Separately, the German authorities are also conducting intense negotiations with Intel, in connection with the American group’s plans to build a semiconductor production facility in eastern Germany.
According to sources cited by the German financial daily Handelsblatt, it was revealed that the American Intel group would receive subsidies worth 9.9 billion euros from the German state, higher than the 6.8 billion euros previously promised. Handelsblatt stated that final negotiations on this file would take place this weekend.
The spokesman of the German Ministry of Economy informed that there will be a meeting of the German Chancellor Olaf Scholz with the CEO of Intel, Pat Gelsinger, on Monday. (Agerpress)
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