Israel’s government agreed to give Intel Corp a $3.2 billion grant for new $25 billion chip plant it plans to build in southern Israel, both sides said on Tuesday.
The Times of Israel reported back in July this year, the US semiconductor had inked an agreement in principle with the Israeli government to build a chip manufacturing plant in Kiryat Gat at an investment of $25 billion.
Prime Minister Benjamin Netanyahu said the Intel investment was “unprecedented” in Israel and would go toward building a chip manufacturing plant that will use the most advanced technology in the world. In 2019, Intel already held talks for an investment of around $10 billion into building the Kiryat Gat chip plant.
“This is the largest investment ever in the State of Israel,” Netanyahu said at the weekly cabinet meeting on Sunday. “This is an expression of great confidence in the Israeli economy and exactly reflects the strength of the free economy that we have built here, and the technological economy that we are developing here.”
