Intel to make a $6 billion investment to upgrade Israel tech facility

Intel has receive approval from Israel’s Finance and Economy Ministries to invest $6 billion to be used in the remodeling and expansion of its Fab 28 chip manufacturing plant in Israel.

This will be the single largest investment made by a foreign company in Israel to date, and will put the Intel plant located in Kiryat Gat among the most advanced chip manufacturing facilities in the world.

Intel will receive a $300 million grant over five years from the government in Israel, and will also be eligible to pay a low corporate tax rate of only 5%, for a 10-year period.

"Intel`s investment is a strategic asset for Israel`s industry. This is the biggest investment by a foreign company ever in Israel and is further proof that Israel is at the forefront of technology and innovation,” said Israel’s finance minister Yari Lapid.

Lapid said the investment will help Intel’s facility in Kiryat Gat to be the first to push forward with the company’s next step, manufacturing the 10 nanometer (NM) processor chips. Intel now stands at 14nm.

Intel is also hoping the facility will hire nearly 1,000 more workers in addition to the 2,500 that already work there.

This is only the latest of foreign investments made into the tech hub seen as second only to Silicon Valley in terms of start-up ecosystem.

Amazon, Apple, Google, Cisco and Microsoft are just some of the tech giants that now house development and research facilities in Israel.

Israel’s influence on global consumer technology will only continue to grow, given the country’s status as one of the world leaders in having qualified scientists and engineers.

Even with the Gaza conflict this summer, Israel’s tech sector maintained its pace forward, with four companies going public.