Intel wants $144-million grant for Kiryat Gat plant expansion
Intel Israel has put a price on the special government grant it is seeking in order to defray the cost of expanding its chip-making facility in Kiryat Gat. According to a Jerusalem official who spoke to TheMarker, that price is between $128 million and $144 million.
The unusually large amount - which comes to 8-9% of the company's $1.6 billion expansion - would require special approval from Finance Minister Yuval Steinitz and Industry, Trade and Labor Minister Benjamin Ben-Eliezer. The heads of Intel Israel met with Steinitz last week in an effort to win his support.
The chip giant has explained that the expansion will not create more jobs for the southern city, though it will upgrade the plant's activities and will make it possible to hire Intel workers from the company's other local operations that will be made redundant.
Ben-Eliezer recently said he has no intention of approving aid for factories that are not expanding their workforce.