BICOM

Global tech giant, US chip manufacturer Intel, announced yesterday that it had agreed to upgrade its facility in Kiryat Gat, with Israeli media reporting that the investment will total £3.5 billion and create thousands of new jobs.

Intel’s presence in Israel dates back 40 years and plants exist in Jerusalem and Kiryat Gat. Although yesterday’s official announcement by Intel was light on detail, it made clear the company’s intentions saying they would “upgrade the Kiryat Gat facility to meet future needs,” although “details of the project, including schedules, costs and technologies are not being disclosed at this time.”

However, Israeli media reports said that Intel is planning to invest £3.5 billion in the facility, generating significant new job opportunities. It is reported that the expansion may accommodate facilities to produce advanced 10 nanometer chips, which will power new wearable technology. Intel had apparently been mulling until now whether to base this new production in Israel or Ireland. It is also widely reported that Intel will receive either a significant grant or meaningful tax breaks from Israel’s government as part of the agreement.

Israel’s leaders were quick to praise the Intel announcement. Prime Minister Benjamin Netanyahu said, “Israel is a focal point of global technology, and investing in it generates profits both to the investors and the citizens of Israel.” Economy Minister Naftali Bennett, whose ministry will facilitate Intel’s new investment, commented that it is “the best gift we could ask for on our 66th Independence Day,” which falls next week. Meanwhile, Finance Minister Yair Lapid said the Intel’s expansion is “an expression of faith in Israel’s economy.” He predicted that, “These investments will create thousands of jobs directly for Intel, and tens of thousands of jobs in the rest of the economy.” He added that Intel’s upgrade “will continue to help advance tech investments in Israel.”