JERUSALEM (Reuters) -U.S. chipmaker Intel Corp will spend $25 billion on a new factory in Israel, Prime Minister Benjamin Netanyahu said on Sunday, calling it the largest-ever international investment in the country.
The factory in Kiryat Gat is due to open in 2027, to operate through 2035 at least and to employ thousands of people, Israel’s Finance Ministry said, adding that under the deal Intel will pay up a 7.5% tax rate, up from the current 5%.
During its almost five decades of operations in Israel, Intel has grown to become the country’s largest privately held employer and exporter and a leader of the local electronics and information industry, according to the company’s website.
In 2017, Intel bought Israel-based Mobileye Global Inc, which develops and deploys advanced driver-assistance systems, for $15 billion. Intel took Mobileye public last year.
Announcing the deal in televised remarks to his cabinet, Netanyahu called it “a tremendous achievement for the Israeli economy – 90 billion shekels ($25 billion) – the largest investment ever by an international company in Israel”.
There was no immediate comment from Intel in Israel.
(Writing by Dan Williams and Ari Rabinovitch; editing by James Mackenzie)
Source: https://finance.yahoo.com/news/intel-build-25-billion-factory-084222814.html