Israel is set to receive the largest ever investment in the country as Intel Corporation said it will set up a chip plant in the country at a cost of $25 billion. The US chip giant's semiconductor factory in Israel is set to start operations in 2027, news agencies reported.
Great Show of Confidence
Israel Prime Minister Benjamin Netanyahu underscored the importance of the deal, saying it will be the largest-ever international investment in the country. "This is a great show of confidence in Israel's economy, and shows the strength of the free economy we built here and the technological economy developing here," Netanyahu said, according to Agence France-Presse.
The factory will be set up in Kiryat Gat, south of Tel Aviv, and is expected to give employment to thousands of people, according to the Israeli finance ministry. The ministry also said the Intel's tax rate will rise to 7.5 percent from 5 percent currently, following the deal.
Since the 1970s
Intel and Israel have a decades-old history, with the US firm starting operations in the country since the 1970s. According to the Israeli finance ministry, Intel employs as many as 12,000 people in the country. Intel's global work force is estimated to be around 130,000.
Intel said its operations in Israel have played a great role in its global successes over the years. "Our intention to expand manufacturing capacity in Israel is driven by our commitment to meeting future manufacturing needs ... and we appreciate the continued support of the Israeli government," it said in a statement.
Intel bought Israel-based Mobileye Global Inc in 2017. The acquisition served strategic goals as the Israeli compamy develops and deploys advanced driver-assistance systems.
