Intel has promised to spend at least $550 million in Israel in the next five years, part of a commitment by the company to spend $6 billion to upgrade its Kiryat Gat plant for the manufacture of new advanced chips for its next generation devices, Intel and the Economy Ministry announced Sunday.
While Israel is providing the company with grants of $600 million over the next five years as well as a major tax break through 2023, Intel committed to hiring at least 1,000 new employees.
“This arrangement will have a very positive effect on hundreds of small businesses and suppliers,” said Ziva Eiger, director of investments at the ministry’s Industrial Cooperation Authority. “As a result of this agreement, Israelis can look forward to thousands of more jobs being available.”
Intel Israel CEO Mooly Eden said, “Last year, Intel Israel was responsible for more than 9% of Israel’s tech exports.”
Intel already employs 10,000 workers in Israel, with over 30,000 Israelis working at companies that provide products and services to Intel.