Intel Logo
The US chipmaker apparently wants to invest $ 25 billion in a factory in Israel.
(Photo: Reuters)
Jerusalem US chipmaker Intel will build a new $ 25 billion factory in Israel, according to Prime Minister Benjamin Netanyahu. This is the largest international investment in the country so far, Netanyahu said on Sunday.
The factory in Kiryat Gat is scheduled to open in 2027 and will employ thousands of people, according to the Israeli Ministry of Finance. According to the agreement, a tax rate of 7.5 percent for Intel was agreed, which is above the current level of five percent. At first, Intel was unable to comment on the information from Israel.
The US group is also currently negotiating the construction of a new chip factory in Magdeburg. The final details are to be negotiated over the weekend before Intel CEO Pat Gelsinger is scheduled to sign the paper during his planned visit to the Federal Chancellery on Monday.
The big question is whether and on what terms the volume of subsidies will be increased. Originally, 6.8 billion euros had been promised, but in the meantime an increase of the funding amount to around ten billion euros is under discussion. Originally, the Magdeburg plant was supposed to cost 17 billion euros, but now there is talk of 20 billion euros due to increased construction costs.
Intel gave the go-ahead for a project in Poland last Friday. For 4.6 billion dollars, a plant for testing and assembling processors is to be built in Wroclaw.
“Poland was just a little bit hungrier to get the contract,” said CEO Gelsinger. Several states had offered themselves as a location. Polish Prime Minister Mateusz Morawiecki called the factory “the largest greenfield investment in the history of Poland”. The federal government does not see this as a competition to the plant in Magdeburg.
More: German government and Intel close to agreement – subsidies for chip factory are to increase to 9.9 billion euros
