Multinational technology giant Intel announced Tuesday that it plans to increase its investment in Israel by an additional 18 billion shekels ($5 billion). This follows the company's announcement in February that it will invest $4.5 billion in its Israeli ventures in 2018.
Intel Israel currently employs 11,000 people. According to the company's website, Intel has bought goods and services from local Israeli suppliers to the tune of $10 billion over the past decade, with exports amounting to $50 billion. The company's exports for 2017 totaled $3.6 billion.
The additional funds have been earmarked for the company's flagship facility in the southern city of Kiryat Gat.
Intel is expected to receive a host of tax breaks and other state incentives for its investment, which the government is expected to approve in the coming weeks.
The company said that as part of its investment, it will offer 250 new jobs as well as undertake the technological upgrade of the Kiryat Gat facility, which Intel officials say has a "significant advantage" over the company's other sites worldwide.
An inter-ministerial team tasked with offering incentives to foreign investors has recommended giving Intel a grant of NIS 700 million ($195 million), contingent on its commitment to making a strategic investment in its Israeli operations.
"I have just heard from Intel CEO [in Israel] Yaniv Garty that after two years of intensive work, Intel's global management has accepted our proposal to invest another NIS 18 billion and expand its activity in Israel," Finance Minister Moshe Kahlon said.
"We were in competition with several countries for Intel's investment and I worked on getting them to choose us for two years, with the vice president of Intel International. In a week of Israeli successes, we are again making strides in the global economy."
Economy and Industry Minister Eli Cohen said, "Intel's choice to continue significantly investing in Israel is an important expression of confidence in the State of Israel and its economy. Intel's advanced activities in Israel support our policy of increasing exports and creating quality jobs in general and in the periphery in particular."
