Intel to sink in $10.9 billion for new chip plant: Moshe Kahlon Israel’s finance minister

Intel is one of the biggest employers in Israel as well as one of its biggest exporters.

Israel’s finance minister has stated, Intel Corp will sink in $10.9 billion (40 billion shekels) on a new chip plant factory in Israel, as part of its most recent multi-billion dollar investment in the country.

“Intel’s global management has informed us about its decision to invest another 40 billion shekels in Israel, an unprecedented decision that is expected to bring thousands of jobs to the south (of Israel),” said Israeli finance minister Moshe Kahlon on Twitter.

In May 2018, Intel had commitment to invest nearly $5 billion (18 billion shekels) for upgrading its existing factory in Kiryat Gat, a southern Israeli city, between 2018 and 2020.

That commitment included a promise to spend 3 billion shekels on local suppliers.

On Monday, the Globes, a news website, had reported that Intel plans on building its new factory at Kiryat Gat. The report also stated, Intel’s agreement with Israel could include an exemption from the tender process.

Intel is already preparing physical infrastructure to build the plant in Kiryat Gat, stated the report.

Intel said it will submit a business plan to the Government of Israel for continued investment in the company’s Kiryat Gat manufacturing site.

Intel said, it will not disclose any details including, the schedule, technologies involved or costs for the new project.

For Intel, Israel is an important country. Many of its key new technologies are developed in the country.

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