Intel Breaks Records in Israel with State-of-the-Art Factory Commitment

Intel, the renowned multiprocessor giant, has announced plans to build a chip manufacturing factory in Israel, marking the largest foreign investment ever made in the country. With an investment of approximately $25 billion, Intel aims to construct an advanced facility in Kiryat Gat, a significant milestone in their longstanding partnership with Israel.

Following extensive negotiations between Intel and the professional ranks in the Budget Division of Israel’s Ministry of Finance, conclusive agreements have been reached. Prime Minister Benjamin Netanyahu and Economy Minister Nir Barkat were informed of this significant development. The deal outlines Intel’s commitment to investing billions in the state-of-the-art facility, positioning Israel as a strategic hub for Intel’s operations.

As part of the agreement, Intel will receive a grant equivalent to 12.8% of the total investment, taking advantage of the capital investment encouragement law in Israel. This incentive reinforces Intel’s dedication to expanding its presence in the country.

Intel’s existing design and development center in Petach Tikva has been at the forefront of advancements in cellular communications components and software. Additionally, Intel operates four other development centers situated in Haifa, Yakum, Petach Tikva, and Jerusalem, along with manufacturing-related facilities in Kiryat Gat and Jerusalem.

The state-of-the-art factory in Kiryat Gat is slated to commence operations in 2027 and is expected to continue production until at least 2035. This ambitious endeavor will create thousands of employment opportunities, making a significant contribution to Israel’s job market.

Prime Minister Netanyahu, in a televised announcement to his cabinet, described the investment as a “tremendous achievement for the Israeli economy,” hailing it as the largest ever made by an international company in Israel. “It is an expression of great confidence in the Israeli economy and reflects the strength of the free economy we have built, and the technological economy we’re developing here,” PM Netanyahu wrote in a tweet on Sunday.

Intel, acknowledging the role played by its Israeli operations in its global success, expressed gratitude for the continued support of the Israeli government. The company’s operations in Israel have significantly contributed to its growth, making Intel the country’s largest privately held employer and exporter in the electronics and information industry.

The investment not only showcases Intel’s confidence in Israel’s technology ecosystem but also underscores the country’s attractiveness as a destination for high-tech investments.