Intel Gets a Billion - and Will Invest 5 Billion
Intel, the world's largest computer and device chip maker, continues to expand its operations in Israel. The government on Tuesday awarded the company with a NIS 1 billion grant to substantially increase its activities in Israel, and in return, Intel will double its production capacity at one of its plants in Israel, build another production facility, hire over 2,000 more workers – and spend NIS 5 billion on new plants and upgrades.
Intel has a huge presence in Israel, employing over 6,000 people in half a dozen facilities, including the company's second largest chip fabrication plant in the world, in Kiryat Gat. And under the latest deal with the government, that plant is slated to get even bigger; in the first stage of the deal, NIS 300 million of the grant will be used to expand the Kiryat Gat plant, where an additional 1,500 workers will be hired.
In the north, Intel will build another fabrication plant, where an additional 600 to 1,000 workers will be hired. Intel will receive NIS 550 million for that investment. And, an additional 400 workers will be hired for Intel's existing facilities in the north. The government grant will be rolled out in 2014, and Intel said that it would take 10 years to fully realize its commitment of NIS 5 billion.
Intel announced its intention to expand in Israel and to seek the grant in June. The Kiryat Gat plant will be further upgraded to produce smaller 22 and 15 nanometer chips, to be used in Intel's new processor architecture.
Finance Minister Yuval Steinitz praised the deal, saying that “Intel's continued investment in Israel shows the company's faith in the stability of Israel's economy.” Steinitz added that the company's new northern fabrication plant “will be a strategic anchor in the region and help strengthen the periphery.”