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Israel to pay Intel $400 million for new fab

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CIOL Bureau
New Update

Israel and Intel have been in close partnership for more than two decades.

This week, the Israeli government agreed to pay an estimated $400 million to

help Intel build a massive $3.5 billion, 300-mm production plant that will

employ some 3,000 workers.

Finance Minister Avraham Shochat said his country would pay one-eighth of the

construction costs for the plant, the second Intel facility to be constructed in

the city of Kiryat Gat, 40 miles southeast of Tel Aviv. "It's a tremendous

achievement for the state of Israel and its economy,'' Shochat said.

Intel originally asked Israel to pay 20 per cent of the project's cost after

paying 38 per cent, or $608 million for the first of the two fabs. Intel opened

its first Israeli facility in 1974. It currently has another chip factory in

Jerusalem and development centers in Haifa and Omer.

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