JERUSALEM: Intel Corp, the US chipmaker, is set to invest $25 billion in a new factory in Israel, making it the largest-ever international investment in the country, announced Prime Minister Benjamin Netanyahu on Sunday.
The factory, located in Kiryat Gat, is scheduled to commence operations in 2027 and run until at least 2035. It is expected to provide employment opportunities for thousands of individuals, according to Israel’s Finance Ministry. As part of the deal, Intel will pay a 7.5% tax rate, an increase from the current 5%.
Intel has been operating in Israel for nearly five decades and has emerged as the country’s largest private employer and exporter, as well as a key player in the local electronics and information industry, as stated on the company’s website.
In 2017, Intel acquired Mobileye Global Inc, an Israel-based company specializing in advanced driver-assistance systems, for $15 billion. Last year, Intel took Mobileye public.
During a televised announcement to his cabinet, Prime Minister Netanyahu hailed the deal as a significant milestone for the Israeli economy, stating that it represents a massive investment of 90 billion shekels ($25 billion) – the largest ever made by an international company in Israel.
