Intel to Invest $25 billion in Israel to Build New Chipset Factory

New Delhi, 19th June 2023: On Sunday, Prime Minister Benjamin Netanyahu revealed that US chipmaker Intel Corp has committed to investing $25 billion in a new factory in Israel, the country’s largest-ever international investment.

The facility, located near Kiryat Gat, is slated to open in 2027 and run until at least 2035. According to Israel’s Finance Ministry, this new system is likely to create thousands of job opportunities.

According to the Finance Ministry, as part of the agreement, Intel will be subject to a 7.5 percent tax rate, up from the existing 5%.

Over the course of over five decades, Intel has grown to become Israel’s largest privately held employer and exporter.

In 2017, Intel made a huge acquisition when it paid $15 billion for Israel-based Mobileye Global Inc, a creator and deployer of advanced driver-assistance systems. Intel went public with Mobileye last year, significantly strengthening its position in the Israeli market.

During a televised address to his cabinet, Prime Minister Netanyahu praised the investment, calling it a “tremendous achievement for the Israeli economy” and emphasising its value of 90 billion shekels ($25 billion).

Intel asserted that its activities in Israel were vital to the company’s global success. The move to expand manufacturing capacity in Israel, according to the company, accords with Intel’s commitment to fulfilling future manufacturing needs.