Intel to put $25bn into Israel fab

The latest  announcement came on TV  from the Prime Minster of Israel Benjamin Netanyahu. He said it is the largest-ever international investment in the country.

While not specifically endorsing Netanyahu’s statement, Intel said:  “Israel is a global centre of technical talent and innovation and one of Intel’s significant global manufacturing and R&D centres. Since its establishment in 1974, Intel Israel has played a crucial role in Intel’s global success. Our intention to expand manufacturing capacity in Israel is driven by our commitment to meeting future manufacturing needs and supporting Intel’s IDM 2.0 strategy, and we appreciate the continued support of the Israeli government.”

The new fab will be in Kiryat Gat where Intel already has a fab and is  due to start operations in 2027. $3.2 billion of the $25 billion cost will come from the Israel government.

There is speculation that the $25 billion figure could include a previously announced $10 billion investment.

Profits from the fab will be taxed at 7.5%, said Israel’s finance ministry – up from the current 5%.