Intel Corporation (NASDAQ:INTC) will receive up to $300 million in grants, over the next five years from the Israeli government after receiving approval for the upgrade of its chip manufacturing plant in the country. Intel has already committed $6 billion for the upgrade. The investment according to Reuters is the biggest, ever carried out in a foreign country by a single investment.
The $6 billion project will be eligible to a corporate tax rate of 5% over the next 10 years. The upgrade is expected to result in the creation of an additional 1,000 job opportunities to the already 2,500 at Intel Corporation (NASDAQ:INTC)’s plant in the city of Kiryat Gat. Israel finance minister, Yar Lapid, has already praised the project as it is expected to act as a strategic asset for the nation.
Lapid was also quick to point out that such projects by Intel Corporation (NASDAQ:INTC) highlight Israel’s potential in the field of technology and innovation. Negotiations are believed to have been ongoing for quite some time as Intel had tabled the expansion plans back in May as it continues to position itself to transition into the nanometer technology.
The upgrade is to be completed in 2023 resulting in one of the most advanced chip facility in the entire world. The plant is expected to give Intel the much-needed advantage in the chip industry. Intel Corporation (NASDAQ:INTC) had announced in January that it was looking for a strategic location to house it’s 10 nanometer plant.
The upgrade is expected to bolster Intel Corporation (NASDAQ:INTC)’s Exports from Israel, which dropped in 2013 to $3.8 billion from a high of $4.6 billion registered in 2012. The $6 billion investment is one of the biggest by Intel considering it has spent $10.8 billion in Israel over a span of 40 years mostly in the development of plants and centers, consequently recouping up to $1.5 billion in grants.
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