Intel plans $11bn Kiryat Gap fab investment

Intel is to build a $11 billion 10nm fab in Kiryat Gat. Intel has asked the Israeli government to cover 10% of the cost.

‘Intel’s global management has informed us about its decision to invest another 40 billion shekels in Israel, an unprecedented decision that is expected to bring thousands of jobs to the south,” says the Israeli finance minister Moshe Kahlon

The investment would be in addition to the $5 billion investment for Kiryat Gap announced last year which came with a $700 million government grant.

The percentage grant asked for is higher than the 5% grants given by Israel to Intel in previous years.

It also points out that Intel gets an exceptionally low corporate tax rate of 5% from Israel.

Intel is also building fabs in Oregon and Ireland.

Last year, Intel VP and manufacturing and operations general manager Dr. Ann Kelleher, said: “We are now planning an expansion of our production sites in Oregon, Ireland, and Israel. Construction work, which will continue for a number of years, will begin in 2019.”