Prime Minister Benjamin Netanyahu announced on Sunday that US chipmaker Intel Corp has committed to investing $25 billion in a new factory in Israel, marking the largest-ever international investment in the country. The factory, located in Kiryat Gat, is expected to commence operations in 2027 and continue at least until 2035. This new setup is expected to provide employment opportunities for thousands according to Israel's Finance Ministry.
As part of the agreement, Intel will be subject to a 7.5 per cent tax rate, which is an increase from the current 5 per cent, according to the Finance Ministry.
Over nearly five decades of operations, Intel has become Israel's largest privately held employer and exporter.
Also read: Is Intel planning to build a semiconductor manufacturing plant in India?
In 2017, Intel made a significant acquisition by purchasing Israel-based Mobileye Global Inc, a developer and deployer of advanced driver-assistance systems, for $15 billion. Last year, Intel took Mobileye public, further expanding its foothold in the Israeli market.
Prime Minister Netanyahu hailed the investment during a televised address to his cabinet, describing it as a "tremendous achievement for the Israeli economy" and emphasizing its value at 90 billion shekels ($25 billion).
Intel claimed that its operations in Israel have played a critical role in the company's global success. The company claims that the decision to expand manufacturing capacity in Israel aligns with Intel's commitment to meeting future manufacturing needs.
Also read: Intel to sell $1.5 bln stake in Mobileye
With inputs from agencies.