$25 billion.. American Intel will invest in Israel

In the largest foreign investment in the country, Intel is building a $25 billion factory in Israel

Israeli Prime Minister Benjamin Netanyahu announced Sunday that Intel will build a new $25 billion factory, describing it as the largest ever international investment in the country's history.

largest investment ever

Netanyahu announced the deal in televised remarks during a cabinet meeting, describing it as "a tremendous achievement for the Israeli economy, 90 billion shekels ($25 billion), the largest investment ever for an international company in Israel."

 The Israeli Ministry of Finance stated that the factory in the city, Kiryat Gat, is scheduled to open in the year 2027 to operate until at least 2035, and it will employ thousands of people, adding that under the deal Intel will pay a tax rate of 7.5 percent, up from the current five percent.

largest private sector

Intel's website states that, during its nearly five decades of operations in Israel, the company has now become the country's largest private sector employer and exporter and a local leader in the electronics and information industry.

Intel said in a statement that its operations in Israel "played an important role" in the company's global success.

Intel added, "Our intentions to expand manufacturing capacity in Israel are driven by our commitment to meeting future manufacturing needs... and we appreciate the continued support of the Israeli government."

Mobily Global

In 2017, Intel bought Mobily Global, an Israel-based company that develops and deploys advanced driver assistance systems, for $15 billion. Intel put part of Mobily's shares up for sale last year.

Intel Israel revealed last week that it will record exports of $8.7 billion in 2022, constituting 1.75% of Israel's GDP and 5.5% of all Israeli high-tech exports.

These figures were revealed in Intel's Corporate Responsibility Report in Israel, which the company published from 2022 to 2023.

 Additionally, Intel Israel purchased $3.5 billion in goods and services from Israeli companies, representing a growth of 60%, up from $2.2 billion in 2021.

Intel directly employs 11,700 people in Israel, at its three R&D centers - in Haifa, Petah Tikva and Jerusalem as well as at its manufacturing center in Kiryat Gat.

In terms of indirect employment, Intel is currently responsible for creating indirect jobs for approximately 42,000 workers in Israel.