Nov. 11, 2002 – Tel Aviv, Israel – The Israeli Industry and Trade Ministry’s Investment Center has approved Intel Corp.’s request for an investment grant toward a possible $4 billion chip plant in the town of Kiryat Gat.
If Intel decides to build the plant, the government would provide a grant of 12.5% of up to $3.5 billion of the investment, the ministry said. The grant approval is open for a period of two years, reported Reuters.
The Investment Center’s director, Shmuel Mordechai, said Intel has not yet decided whether it will actually go ahead with the plant due to uncertainty in the high-tech sector, but he hoped the approval would serve as an incentive.
An Intel spokesman said the company has not yet decided whether or where to build the plant.
If Intel goes ahead with the plant it would be the largest-ever investment in Israel.
The plant would manufacture next-generation chips of 0.1-micron that are not yet being produced at any other Intel plant, the ministry said.
The plant would employ 2,400 workers and an additional 2,000 would be involved in the construction.
Sales are expected to total $2.9 billion a year.
Intel currently produces chips in the United States, Israel, and Ireland.