Intel Corp on Tuesday confirmed plans to invest $5 billion to expand its Kiryat Gat production plant in Israel.
While the US semiconductor giant did not reveal financial details, the plan could pave the way for future technological upgrades at the site. According to CNBC, Israel's Finance Ministry said the company would invest about 18 billion shekels ($5 billion) in the plant through 2020 and has agreed to spend 3 billion shekels on local suppliers.
“Intel’s choice to continue to invest significantly in Israel is an important expression of confidence in the State of Israel and in the Israeli economy,” said Israel’s Minister of Economy and Industry Eli Cohen. “We see Intel as a partner and its renewed choice to invest in Israel reinforces the economy and employment in Israel and we expect this cooperation to continue in the future as well. “
“More than 320 foreign companies operate in Israel and make a significant contribution to growth, innovation, export and employment,” Cohen stated. The US chipmaker's latest investment in Israel comes on the heels of a $6 billion upgrade of the same plant in southern Israel announced by the company in 2014, to enable the production of Intel’s most advanced nextgen computer chips - the 10 nanometer chips.
Meanwhile, the country's Finance Minister Moshe Kahlon pointed out that there was competition among several countries for Intel’s investment, but Israel worked closely with the firm to finalise the investment plan.