The Israeli finance and economy ministries on Monday approved a plan by Intel to invest $6 billion in upgrading its chip-manufacturing plant in Israel, marking the largest-ever single international investment in the Jewish state.
“Intel’s investment is a strategic asset for Israel’s industry,” Finance Minister Yair Lapid said, Reuters reported. “This is the biggest investment by a foreign company ever in Israel and is further proof that Israel is at the forefront of technology and innovation.”
According to the investment plan, the U.S.-based chip maker plans to hire nearly 1,000 more workers at its plant in Kiryat Gat. Intel will also receive a $300 million grant from the Israeli government and a corporate tax rate of 5 percent for 10 years.
While Intel has not yet made an announcement on the plan, the Israeli finance ministry believes the investment by Intel will be used to manufacture its new advanced 10-nanometer chips.
Intel has been operating in Israel for nearly four decades, investing more than $10.8 billion there and employing 10,000 people.