Intel plans a $11 billion investment in a new factory in the south of Israel, Haaretz reports.
The company will put in $10 billion, with a $1 billion incentive to come from the Israeli government. The deal isn’t final and will need approval from various government bodies.
For previous investments, Intel requested the government cover 10% to 15% of the expected cost, but Israel offered a 5% grant with an additional 5% tax credit for a promise of jobs and at least a 12-year period of operation. Eventually the government committed to an 8% contribution, according to Haaretz.
Intel has already planned a separate $5 billion expansion of a production plant there, according to Reuters. The company also plans expansions for existing facilities in the U.S. And Ireland. Intel wants to expand the types of products it offers to reach new types of customers, including automobile safety and mobile phone wireless communications.
The new facility in Israel is expected to add 1,000 jobs to the 13,000 it already had in Israel. One of its existing facilities is Mobileye, which develops autonomous vehicle and advanced driving assistance systems using proprietary computer chips.
Intel is a major industrial exporter from Israel, hitting $4 billion in 2018.
There are no details of the new development, the technologies it will support, or the development timetable.
