Prime Minister Benjamin Netanyahu announced that Intel Corp (INTC.O) would invest $25 billion in a new factory in Israel, the country’s largest international investment.
Israel’s Finance Ministry claimed the Kiryat Gat facility will open in 2027, run through 2035, and employ thousands. The ministry said Intel will pay 7.5% tax instead of 5% under the accord.
According to the company’s website, Intel has become Israel’s largest privately held employer, exporter, and electronics and information industry leader in nearly 50 years of business.
Intel purchased Israel-based Mobileye Global Inc (MBLY.O), which develops and operates advanced driver-assistance systems, for $15 billion 2017. Intel listed Mobileye last year.
Netanyahu dubbed the purchase “a tremendous achievement for the Israeli economy – 90 billion shekels ($25 billion) – the largest investment ever by an international company in Israel” in a televised cabinet meeting.
Intel said its Israel operations “played a crucial role” in its global success.
“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 stated.
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