Benjamin Netanyahu says Intel plans $25bn investment in Israel chip factory

Prime Minister Benjamin Netanyahu said Sunday that Intel has agreed “in principle” to invest about $25 billion in a new chipmaking factory in Israel.

The US semiconductor conglomerate said it had “submitted a business plan to upgrade its manufacturing facilities in Israel”, where it has operated since 1974, but declined to confirm “specific details of the project”.

“Our intention to expand manufacturing capacity in Israel is driven by our commitment to meeting the manufacturing needs of the future . . . and we appreciate the continued support of the Israeli government,” Intel said in a statement.

The upgrade is one of several chip plant investments planned by Intel, and comes as tensions between the US and China over Taiwan, which dominates the high-end global chip market, have prompted chip makers to re-evaluate their operations around the world. Have motivated for.

Intel is in talks with Germany over a €20 billion plant in Magdeburg, and last week said it would build a $4.6 billion semiconductor assembly and test plant in Poland. It is also in discussion about a plant in Italy.

Netanyahu said the new factory in Kiryat Gat, where Intel already has a facility, would be the “biggest investment ever” in Israel.

Since Netanyahu’s far-right government unveiled controversial plans to overhaul the judiciary earlier this year, hundreds of thousands of Israelis have participated in weekly protests, with leaders of the country’s booming tech sector among the most vocal critics of the proposals. were involved in

The head of the country’s central bank warned last month that the fight over the overhaul had dealt a “significant domestic blow” to Israel’s economy. Meanwhile, the Israel Innovation Authority warned in May that there had been a “significant increase” in the number of Israeli start-ups registering abroad instead of in Israel.

Netanyahu has consistently downplayed fears over the economic impact of the judicial overhaul and said on Sunday that the planned investment by Intel was “an expression of great confidence in the Israeli economy”.

“[It]really shows the strength of the free economy that we’ve built here, and the tech economy that we’re developing,” he said.

Israel’s Finance Ministry said the project is expected to employ thousands of new workers. It added that as part of the deal, Intel would pay a local tax rate of 7.5 percent, up from its current 5 percent.