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Intel to invest $4.5b in Israel in 2018

Discussion in 'Middle East & Africa' started by dani191, May 18, 2018.

  1. dani191

    dani191 SENIOR MEMBER

    Jul 10, 2017
    +0 / 577 / -1
    Intel to invest $4.5b in Israel in 2018

    18 Feb, 2018 18:03
    Yuval Azulai and Amiram Barkat

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    Sources inform "Globes" that Intel will receive 20%-30% of the investment in Israeli government grants.

    "Intel has decided to invest billions of dollars in Israel in 2018," Minister of Finance Moshe Kahlon told the Knesset Finance Committee today. "Last week I received confirmation about this from Intel. I wouldn't have spoken about this without the approval of Intel," he added referring to his comments in Haifa last week that Intel was about to make a major investment in Israel.

    Kahlon revealed the planned investment after receiving a positive response from Intel to a package of benefits that the chipmaker will receive in exchange for the investment. Sources inform "Globes" that the amount to be invested is estimated at about $4.5 billion.

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    "Globes" has also learned that the agreement between Intel and the Israeli government will be presented to a committee of three comprising the ministry of Finance director general, the Ministry of Economy and Industry director general and the head of the Israel Tax Authority.

    Sources close to the meetings in recent weeks between Intel and Israeli government officials believe that the package agreed between the Israeli government and Intel in exchange for the investment, at its plant in Kiryat Gat, includes a grant of 20%-30% of the investment as part of the Law for the Encouragement of Capital Investment, land exempted from a tender, subsidy on development costs and reduced corporation tax.

    Kiryat Gat is already one of the world's most advanced chip fabs after Intel invested $6 billion in expanding and upgrading it during 2016 and 2017.

    Intel has also been in talks with Israeli government officials about an additional huge investment in Israel in the operations of Jerusalem based auto-tech company Mobileye, which it acquired for $15.3 billion and has transformed into its Autonomous Driving Group.