Israel Grants Intel $3.2bn for New $25bn Chip PlantIsrael’s government has agreed to give Intel Corp a $3.2bn grant for a new $25bn chip plant it plans to build in southern Israel, both sides have said.
The news on Tuesday comes as Israel remains locked in an intense war on the Gaza Strip, which has killed close to 21,000 Palestinians since October 7, and ushered global calls to boycott Israel and companies that benefit from its occupation of Palestinian lands.
Israel’s deal with Intel is a big show of support by a major US company and a generous offer by the Israeli government at a time when Washington – which is Israel’s biggest supporter – has increased pressure on Tel Aviv to take further steps to minimise civilian casualties in Gaza.
In addition to the grant that amounts to 12.8 percent of the total investment, the chipmaker also committed to buying 60 billion shekels ($16.6bn) worth of goods and services from Israeli suppliers over the next decade, while the new facility is expected to create several thousand jobs.
To open in 2028
Israel’s finance and economy ministries said Intel’s investment, especially in this period and in light of the global competition to attract significant investments in the field of chips, is a significant expression of confidence in the country’s economy.
They said the investment has direct fiscal benefits for Israel that will be significantly higher than the state’s grant.
