Intel's Unprecedented $25 Billion Investment in Israeli Factory Revealed by PM Netanyahu

Intel makes history with a groundbreaking $25 billion investment in an Israeli factory. Learn about the significant economic impact, employment opportunities, and Intel's commitment to technological innovation.

Jun 18, 2023 - 07:42
Jun 18, 2023 - 07:43
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Intel's Unprecedented $25 Billion Investment in Israeli Factory Revealed by PM Netanyahu
Intel Announces Landmark $25 Billion Investment in Israeli Factory, PM Netanyahu Reveals

Intel Corp, the renowned U.S. chipmaker, has unveiled plans to invest a staggering $25 billion in a new state-of-the-art factory in Israel. Prime Minister Benjamin Netanyahu made the exciting announcement, hailing it as the largest-ever international investment in the country's history.

The forthcoming factory, located in Kiryat Gat, is scheduled to commence operations in 2027, with a projected operation span until at least 2035. This massive undertaking is expected to generate employment opportunities for thousands of individuals, a significant boost to the Israeli workforce, as confirmed by the country's Finance Ministry. To facilitate the investment, Intel has agreed to pay a 7.5% tax rate, a rise from the current 5%, as outlined by the ministry.

With an illustrious history of almost five decades in Israel, Intel has firmly established itself as the country's premier private employer, exporter, and a dominant force in the local electronics and information industry. According to Intel's official website, the company's operations have played a pivotal role in shaping Israel's economic landscape.

This recent development follows Intel's acquisition of Israel-based Mobileye Global Inc in 2017 for an impressive $15 billion. Mobileye specializes in the development and deployment of cutting-edge driver-assistance systems. Subsequently, Intel successfully took Mobileye public last year, further solidifying its presence and influence in the region.

Prime Minister Netanyahu shared his enthusiasm for the landmark deal during a televised cabinet meeting, emphasizing its substantial economic impact. He described it as an extraordinary achievement for the Israeli economy, noting the monumental sum of 90 billion shekels ($25 billion) as the largest investment ever made by an international corporation in Israel.

Intel, in an official statement, expressed the pivotal role of its Israel operations in driving the company's global success. The expansion of manufacturing capacity in Israel serves as a testament to Intel's commitment to meeting future production demands. The company extended its gratitude for the unwavering support provided by the Israeli government throughout the years.

This momentous investment by Intel solidifies Israel's position as a prominent destination for cutting-edge technology and affirms the country's strategic importance in the global semiconductor industry. The move is poised to drive economic growth, create employment opportunities, and further enhance Israel's reputation as a thriving hub for technological innovation.

Also Read: GM and Samsung SDI Join Forces to Build $3 Billion Electric Vehicle Battery Plant in Indiana

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