(CTN News) –Benjamin Netanyahu, announced on Sunday that Intel Corp., the largest chipmaker in the world, would invest $25 billion in it the country’s largest international investment ever.
A factory in Kiryat Gat is expected to open in 2027 and will run until at least 2035, Israel’s Finance Ministry said. The factory is expected to employ thousands of people over a 30 year period.
According to the ministry, Intel will be subject to a 7.5% tax rate under the agreement, which is higher than the current 5% tax rate.
It has been almost five decades since began operations in Israel, and according to the company’s website, Intel has grown into one of the country’s largest privately owned employers and exporters, as well as a local leader in the electronics and information industry.
Intel bought Mobileye Global Inc.,
An Israeli company that develops and deploys advanced driver-assistance systems, for $15 billion in 2017 as part of its acquisition of Intel. Mobileye was taken public by Intel last year as part of their IPO.
As Netanyahu announced the deal to his cabinet in televised remarks, he described it as “a tremendous achievement for the Israeli economy – 90 billion shekels ($25 billion) – the largest investment from an international company in the history of the country.”
According to Intel, in a statement, the company’s Israeli operations had “played a crucial role” in the success of the company’s international operations.
According to the report, “Our intention to expand manufacturing capacity in Israel reflects our commitment to meeting future manufacturing needs … and we appreciate the continued support of the Israeli government that we have received,” the company said.
In Israel, Intel has been operating since the 1970s with two development centers and a production facility that employs some 12,000 people out of the company’s global workforce of 130,000 people, according to the Ministry of Labor.