This 2024 - Let's Win the Battle of Headlines
update deskU.S.-Israel Business, Trade & Technology

Intel building $25b plant in Israel, Netanyahu says

The factory in Kiryat Gat will be the largest-ever foreign investment in the country.

Intel's office in Jerusalem, May 18, 2016. Photo by Yonatan Sindel/Flash90.
Intel's office in Jerusalem, May 18, 2016. Photo by Yonatan Sindel/Flash90.

Intel is making the biggest foreign investment ever in Israel with the building of a chip manufacturing plant, Prime Minister Benjamin Netanyahu announced on Sunday.

The U.S. semiconductor company will spend $25 billion on a third factory in Kiryat Gat in the south of the country that is scheduled to open in 2027, according to the Finance Ministry.

Under the deal, Intel will pay a 7.5% tax rate, up from 5%, the Finance Ministry added.

“This is an expression of great confidence in the Israeli economy and exactly reflects the strength of the free economy that we have built here, and the technological economy that we are developing here,” the prime minister said at the start of the weekly Cabinet meeting.

According to Intel Israel’s Corporate Responsibility Report published earlier this month, the company posted record exports of $8.7 billion in 2022, accounting for 1.75% of Israel’s GDP and 5.5% of Israeli high-tech exports.

The company employs around 10,000 people in Israel directly and another 30,000 indirectly. The chip-making giant has one plant already in operation in Kiryat Gat and is currently constructing another plant there at an investment of $10 billion.

In a statement, Intel said that its Israel operations “played a crucial role” in its global success.

“Our intention 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 company said.

You have read 3 articles this month.
Register to receive full access to JNS.

Just before you scroll on...

Israel is at war.

JNS is combating the stream of misinformation on Israel with real, honest and factual reporting. In order to deliver this in-depth, unbiased coverage of Israel and the Jewish world, we rely on readers like you.

The support you provide allows our journalists to deliver the truth, free from bias and hidden agendas. Can we count on your support?

Every contribution, big or small, helps JNS.org remain a trusted source of news you can rely on.

Become a part of our mission by donating today
Topics
Comments
Thank you. You are a loyal JNS Reader.
You have read more than 10 articles this month.
Please register for full access to continue reading and post comments.
Never miss a thing
Get the best stories faster with JNS breaking news updates