The Ministry of Finance has begun a preliminary examination of whether it is worthwhile granting Intel Corporation (Nasdaq: INTC) billions of shekels if the US giant decides to set up an additional fab in Israel.
Intel has a wide range of operations in Israel at Kiryat Gat, Jerusalem, Haifa, Petah Tikva and Yakum. The company has 8,000 employees in Israel. The largest of these centers at Kiryat Gat has recently undergone an upgrading and major revamp after Intel received generous grants from the Ministry of Economy's Investment Center as part of the Law for the Encouragement of Capital Investment.
Between 1999 and 2010 Intel exported about $20 billion of goods from Israel. In addition to tax breaks the US chip developer and manufacturer has received about $1.4 billion in grants from the Israeli government in three rounds since setting up its Kiryat Gat fab in 1996.
In 2010 alone, Intel received tax breaks worth NIS 1.02 billion, according to figures from the Ministry of Finance's State Revenues Administration and data given to "Globes" by the Tax Authority several months ago following "Globes" petition to the courts on disclosing information about tax breaks.
In 2011, Intel expressed interest in a $5 billion investment in Kiryat Gat for a $600 million grant from the Investment Center. However, the US company's management ultimately preferred to make the investment in Ireland rather than Israel.
Published by Globes [online], Israel business news - www.globes-online.com - on December 19, 2013
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