April 7, 2006 – Intel Corp. has signed a deal with Israel’s Ministry of Industry, Trade and Labor to commit to $810 million in procurements from Israeli companies over the next 10 years, according to the online Globes. That’s down from the $1.2 billion Intel spent in Israel through investments and procurements from 1996-2005, which was “well above” the amount Intel had been obligated to spend.
The procurement agreement comes after Intel received a $540 million grant to help build its new Fab 28 300mm facility in Kiryat Gat, about a tenth of the $5.5 billion overall projected cost of the facility; the state declared $4.2 billion of that amount eligible for government grants.