Prime Minister Benjamin Netanyahu announced on Sunday that the largest-ever international investment in Israel would be made by the U.S. chipmaker Intel Corp. for a new factory in the country.
Israel’s Finance Ministry stated that the Kiryat Gat factory would open in 2027, remain operational until at least 2035, and employ thousands of people. The ministry added that as part of the agreement, Intel will have to pay a tax rate of 7.5%, up from the current 5%.
According to the company’s website, Intel has grown to become the largest privately held employer and exporter in Israel and a leader in the local electronics and information industry over its nearly five decades of operation there.
For $15 billion in 2017, Intel purchased Israel-based Mobileye Global Inc., which designs and implements cutting-edge driver assistance systems. Intel took Mobileye public last year.
“A tremendous achievement for the Israeli economy – 90 billion shekels ($25 billion) – the largest investment ever by an international company in Israel,” Netanyahu said in televised remarks to his cabinet.
Intel’s Israel operations “played a crucial role” in the company’s global success, the company stated in a statement.
It stated, “Our commitment to meeting future manufacturing needs is the driving force behind our intention to expand manufacturing capacity in Israel… and we appreciate the Israeli government’s continued support.”