Intel announced its plans to open a state-of-the-art chip factory in Israel with an estimated investment of $22.9 billion. The facility is expected to commence operations by 2027 and operate until at least 2035, focusing on the production of wafers.

Having already established a strong presence in Israel, Intel operates several research centers and an existing factory within the country. 

Intel has entered into an agreement entitling them to a grant of 12.8% of the total investment amount as per the capital investment promotion law.

As a part of this substantial investment, Intel is expected to generate numerous employment opportunities in Kiryat Gat, surpassing industry-average wages. Moreover, the company has committed to a significant increase in its tax rate to the state, raising it from the current 5% to 7.5%. Intel intends to fulfill these obligations by completing factory construction and commencing operations by 2027, with plans to continue operations until at least 2035.

This investment signifies an unparalleled level of commitment, yielding noteworthy macroeconomic advantages for Israel's economy. Particularly noteworthy is its significance amidst a global economic slowdown and intense competition among nations vying to attract technology and chip manufacturing companies. 

Commissioner of Budgets Yogev Gardos praised Intel’s investment, recognizing the substantial economic benefits it will bring to Israel, particularly in the southern region.

“The negotiations with the company were conducted in a long and professional manner on the basis of economic models to examine the benefits of the investment with the aim of maximizing the value for the Israeli public while promoting the investment in Israel in the face of the various alternatives available to the global company Intel,” he said.

Intel to Build new Chip fab in Israel