Giant US semiconductor company Intel is to invest £9 billion in Israel to build a huge new chip-making factory in the south of the country.
News of the 40 billion shekel boost was announced on Monday by Israel’s Finance Minister Moshe Kahlon, who described it as “an unprecedented decision that is expected to bring thousands of jobs”.
Intel decided to build a new factory after the Israeli government said it would offer round £800 million towards the project.
“The moment the company comes to Israel and invests $10 billion, and it receives a grant of nine percent, that means 91 percent of it stays here,” Kahlon told Army Radio. “There are always such discounts, always incentives.”
In May, Intel committed £4 billion (18 billion shekels) to upgrade its existing factory in the southern Israeli city of Kiryat Gat, and the new plant announced this week will make the company Israel’s biggest employer by far.