Bookmark and Share


Intel Corp. reportedly plans to build another manufacturing facility adjacent to the current Fab 18 in the southern Israeli city of Kiryat Gat. The world’s largest maker of chips is currently negotiating with the Israeli government for incentives. The government is also asking Intel to further boost its presence in the country by building another fab in the northern part of Israel.

“Intel has a bargaining position in deciding where its plants will be, and Intel expects certain concessions or support from the government. But there are other considerations as well, such as the quality of the work force and transportation. What the government is considering are the effects of having a new plant in Kiryat Gat and what impact it will have on the regional development and the national development,” said Moshe Justman, dean of the faculty of humanities and social sciences at Ben-Gurion University, in an interview with The Media Line web-site.

The total cost of the fab that Intel plans to establish next to its Fab 18 is expected to amount $2.7 billion. It is estimated that the plant will provide 400 direct jobs. The company hopes to obtain $400 million in incentives from the government, but the ministry of industry, trade and labor is reportedly offering only $200-250 million. The government is reportedly only willing to provide the incentive package demanded by Intel if the latter agrees to construct another fab in the northern part of the country. It remains to be seen whether Intel agrees to build another plant or Israel agrees to provide the requested support without demanding to establish third facility in the country.

 “Israel does depend on Intel and Intel depends on Israel; there are advantages for both parties. The stronger the Israeli economy and hi-tech industries become, then the position for the government is stronger; but on the other hand there is only one Intel. There is a long stand relationship between the two with mutual befits and Intel going to continue to have a presence in Israel for a long time,” said Mr. Justman.

Intel's fab 18 in Qiryat Gat opened in 1999 and now employs more than 2000 people. In addition, Intel has operations in Haifa, Jerusalem, Petach Tikva and Yakum.

Tags: Intel, Semiconductor, Business


Comments currently: 1
Discussion started: 07/02/10 05:28:48 PM
Latest comment: 07/02/10 05:28:48 PM


And yet again Israelis get another huge load of money ... Good for them but still they should stop the genocide in the Gaza Strip. Yeah .. some extremists must be slapped around but killing women and children and effectively expunging them from their own land is a big no no ... I think INTEL should be careful in linking it's image with a country run by such politics of genocide. But .. INTEL is also overrun by Israelis and may be in fact only doing a natural move as investing in the management's own country land. Still .. they're very lucky to get such huge investments in such an economic depression .
0 0 [Posted by: East17  | Date: 07/02/10 05:28:48 PM]


Add your Comment

Related news

Latest News

Monday, April 14, 2014

8:23 am | Microsoft Vows to Release Xbox 360 Emulator for Xbox One. Microsoft Xbox One May Gain Compatibility with Xbox 360 Games

Tuesday, April 1, 2014

10:39 am | Microsoft Reveals Kinect for Windows v2 Hardware. Launch of New Kinect for Windows Approaches

Tuesday, March 25, 2014

1:57 pm | Facebook to Acquire Virtual Reality Pioneer, Oculus VR. Facebook Considers Virtual Reality as Next-Gen Social Platform

1:35 pm | Intel Acquires Maker of Wearable Computing Devices. Basis Science Becomes Fully-Owned Subsidiary of Intel

Monday, March 24, 2014

10:53 pm | Global UHD TV Shipments Total 1.6 Million Units in 2013 – Analysts. China Ahead of the Whole World with 4K TV Adoption

10:40 pm | Crytek to Adopt AMD Mantle Mantle API for CryEngine. Leading Game Developer Adopts AMD Mantle

9:08 pm | Microsoft Unleashes DirectX 12: One API for PCs, Mobile Gadgets and Xbox One. Microsoft Promises Increased Performance, New Features with DirectX 12

3:33 pm | PowerVR Wizard: Imagination Reveals World’s First Ray-Tracing GPU IP for Mobile Devices. Imagination Technologies Brings Ray-Tracing, Hybrid Rendering Modes to Smartphones and Tablets

2:00 pm | Nokia Now Expects to Close Deal with Microsoft in Q2. Sale of Nokia’s Division to Close Next Month