Intel said in a statement today that the new investment will be mainly used to upgrade the Kiryat Gat manufacturing plant in southern Israel.
According to the Israeli Ministry of Finance, from 2018 to 2020, Intel plans to invest approximately US$5 billion in the plant.
In return, the Israeli government will extend the reduced 5% tax rate enjoyed by Intel to 2027. In addition, the Israeli Ministry of Finance also considered providing 1.94 billion U.S. dollars in aid to Intel. In the future, if Intel continues to invest, the Israeli government will continue to provide subsidies to Intel.
Last year, Intel Israel’s exports reached US$3.6 billion, accounting for 8% of Israel’s overall high-tech exports.