US chipmaker Intel has committed to investing $25 billion in a new factory in Israel, marking the country’s largest-ever international investment, Reuters news report said.
The factory, situated in Kiryat Gat, is scheduled to commence operations in 2027 and operate until at least 2035, providing employment opportunities for thousands of individuals, as stated by Israel’s Finance Ministry.
As part of the agreement, Intel will pay a 7.5 percent tax rate, a slight increase from the current 5 percent, as confirmed by the ministry.
Intel has been actively involved in Israel for five decades, emerging as the nation’s largest privately held employer and exporter while establishing itself as a prominent figure in the local electronics and information industry, as mentioned on the company’s website.
In 2017, Intel acquired Mobileye Global, an Israel-based company specializing in advanced driver-assistance systems, for $15 billion. Last year, Intel took Mobileye public.
Prime Minister Benjamin Netanyahu, during a televised cabinet meeting, said the deal is a monumental accomplishment for Israel’s economy, representing a staggering investment of 90 billion shekels ($25 billion) and the most substantial foreign investment in the country by an international corporation to date.
In a statement, Intel acknowledged the vital role its Israeli operations have played in the company’s global achievements and expressed gratitude for the ongoing support provided by the Israeli government. The expansion of manufacturing capacity in Israel, Intel noted, is driven by its dedication to meeting future manufacturing demands.