Netanyahu says Intel will invest $25 billion in an Israeli factory in a record deal

JERUSALEM (Reuters) – Israeli Prime Minister Benjamin Netanyahu said on Sunday that US chipmaker Intel will spend $25 billion on a new factory in Israel, describing it as the largest ever international investment in the country.

The Israeli Ministry of Finance said that the factory in Kiryat Gat is scheduled to open in 2027, to operate until at least 2035 and employ thousands of people. Under the deal, Intel will pay a tax rate of 7.5%, up from the current 5%, the ministry added.

During its nearly five decades of operations in Israel, Intel has grown to become the country’s largest employer and private exporter and a leader in the local electronics and information industry, according to the company’s website.

In 2017, Intel bought Israel-based Mobileye Global Inc (MBLY.O), which develops and publishes advanced driver assistance systems, for $15 billion. Intel launched Mobileye last year.

Netanyahu announced the deal in televised remarks to his cabinet, describing it as “an enormous achievement for the Israeli economy – NIS 90 billion ($25 billion) – the largest investment ever by an international company in Israel”.

Intel said in a statement that its operations in Israel “played a critical role” in the company’s global success.

“Our intent 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 statement read.

Written by Dan Williams and Ari Rabinowitz; Editing by James Mackenzie

Our standards: Thomson Reuters Trust Principles.

Leave a Reply

Your email address will not be published. Required fields are marked *