Intel Corp. (Nasdaq: INTC) has been told by Israel's Ministries of Industry, Trade and Labor, and Finance that they have agreed to a grant of NIS 678 million for the expansion of its fab at Kiryat Gat.
Intel had asked for a grant of $400 million, which is 15% of the cost of expanding the Kiryat Gat plant, but will only receive about $200 million.The grant will be spread over eight years, and in exchange, Intel will commit to invest NIS 10 billion in Israel and to hire hundreds of new employees at its Kiryat Gat plant, and dozens of new employees at its Jerusalem R&D center.
Intel have also been offered an additional NIS 63 million grant if it expands some of its R&D centers in Israel's peripheral regions or makes R&D investments at Israeli research institutes.
The grant is subject to the approval of the Ministry of Industry, Trade and Labor's Investment Center and the Knesset Finance Committee.
A statement from the Ministry of Industry, Trade and Labor said, "In discussions representatives of Intel committed, on behalf of the company, to make every effort to see that Intel's next investment in upgrading technology will be implemented in Israel."
Published by Globes, Israel business news - www.globes-online.com - on October 4, 2010
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