The Sandy Bridge chip developed by Intel Israel Ltd. accounts for 40% of Intel Corporation's (Nasdaq: INTC) notebook processors revenue, said Intel Israel general manager Maxine Fassberg at the company's annual press conference at its Fab 28 in Kiryat Gat today. She added that the company would hire 600 employees in 2012. Intel Israel currently has 7,800 employees, and hired 700 new employees in 2011.
"Intel Israel's exports totaled $22.4 billion in 1999-2011," said Fassberg. The company's exports totaled $2.2 billion in 2011.
Fassberg said that Intel had invested $9.4 billion in Israel to date, including $1.3 billion in government grants. Intel Israel made $628 million in reciprocal procurements from Israeli companies and estimates its contribution to the Israeli economy at $4.1 billion.
Commenting on his controversial appointment as Intel Israel president alongside Fassberg, Mooly Eden said, "The appointment as president and CEO should be seen as a compliment. It's Intel's recognition of the importance of its Israeli operations. I returned to Israel to increase the size of the pie and expand operations. The appointment as president, alongside the general manager, is accepted practice in the world, such as in China, and I hope that the whole team will lead Intel to do more than before."
Fassberg also noted Intel's latest product, Ivy Bridge, which was developed in Israel, and will be produced at Fab 28 for the commercial market. Last year, Fab 28 upgraded to 22-nanometer technology. She said that the fab's upgrade included the purchase of machinery developed in Rehovot and Migdal Ha'Emek for $364 million. "We think that Intel is a school for Israeli enterprise," she said.
Intel Israel's operations have led to the founding of 230 companies that have hired 250 employees a year since 2006. "When we're asked what is Intel's added value to the Israeli economy, I think that this is a nice example, on top of the export numbers," said Fassberg."
Eden added, "Intel has invested in 64 Israeli companies since 1998. I have no doubt that, in terms of innovation, we'll look at start-ups and invest in and acquire them. I also believe that we'll also help start-ups that do not work directly with Intel."
Published by Globes [online], Israel business news - www.globes-online.com - on March 18, 2012
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