Intel to Invest $11b in Israel and Add Thousands of Jobs, Finance Chief Says

Tech giant is expected to receive 3.2 billion shekel government grant to build new plant in Kiryat Gat

Ora Coren
Send in e-mailSend in e-mail
An Intel logo is seen at the company's offices in Petah Tikva, near Tel Aviv, Israel.
An Intel logo is seen at the company's offices in Petah Tikva, near Tel Aviv, Israel.Credit: \ NIR ELIAS/ REUTERS
Ora Coren

Tech giant Intel is expected to invest some 40 billion shekels ($11 billion) to build a new manufacturing facility in Israel, Finance Minister Moshe Kahlon announced on Monday.

The Israeli government is expected to provide the corpotation with a grant of some 3.2 billion shekels, about 8 percent of what will be the largest single investment ever made in Israel.

Intel is expected to build the new plant alongside its present semiconductor manufacturing facility in Kiryat Gat, on a 75 acre plot just south of the existing plant. Intel has committed to adding another 1,000 to 2,000 new jobs at the new plant, which is scheduled to be completed within five years.

Currently, Intel Israel employs about 11,000 workers in manufacturing and research and development.

Intel plant in Kiryat GatCredit: Intel

In the past, Intel has asked the government for grants to cover 10 to 15 percent of its capital investments in Israel, but was initially offered only 5 percent as a grant, plus another 5 percent corporate tax break in return for the promise of more jobs and a commitment to operate the new plant for at least 12 years. It eventually committed to 8 percent after negotiations.

Kahlon said the government has been working with Intel for a year on the project and Intel management informed him of the “unprecedented” decision on Monday “that is expected to bring thousands of jobs to the south.”

The decision is not final, and still needs approval on Israel’s part from the Investment Center in the Industry and Economy Ministry, along with approval from a special committee from the Finance and Economy ministries and the Tax Authority.

The chipmaker reached an agreement in May 2018 year to invest about 18 billion shekels to upgrade its existing factory in Kiryat Gat between 2018 and 2020.

Intel plant in Kiryat GatCredit: Intel

Intel did not disclose any details of the deal or its plans and schedule for now.

Click the alert icon to follow topics:



Automatic approval of subscriber comments.

Subscribe today and save 40%

Already signed up? LOG IN


Palestinians search through the rubble of a building in which Khaled Mansour, a top Islamic Jihad militant was killed following an Israeli airstrike in Rafah, southern Gaza strip, on Sunday.

Gazans Are Tired of Pointless Wars and Destruction, and Hamas Listens to Them

Trump and Netanyahu at the White House in Washington, in 2020.

Three Years Later, Israelis Find Out What Trump Really Thought of Netanyahu

German soldier.

The Rival Jewish Spies Who Almost Changed the Course of WWII

Rio. Not all Jewish men wear black hats.

What Does a Jew Look Like? The Brits Don't Seem to Know

Galon. “I’m coming to accomplish a specific mission: to increase Meretz’s strength and ensure that the party will not tread water around the electoral threshold. If Meretz will be large enough, it will be the basis for a Jewish-Arab partnership.” Daniel Tchetchik

'I Have No Illusions About Ending the Occupation, but the Government Needs the Left'

Soldiers using warfare devices made by the Israeli defense electronics company Elbit Systems.

Russia-Ukraine War Catapults Israeli Arms Industry to Global Stage