The State of Israel
will give Intel a grant of NIS 741 million ($203 million) to expand its microchip factory in Kiryat Gat, and in return Intel will be obligated to invest $2.7 billion in Israel, Calcalist reported Monday.
The company will be obligated to increase the number of its employees from 570 to 3,100 and add fifty staff members to its research and development center in Jerusalem.
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Last year Intel approached the Investment Center in the Ministry of Industry, Trade and Labor, which has an annual budget of NIS 550 million ($151 million), asking it to consider giving the company a $400 million grant, which amounts to 15% of the $2.7 billion investment it was interested in carrying out in its Kiryat Gat facility.
Because the Investment Center's budget is insufficient to fund the grant for Intel, the Ministry of Industry, Trade and Labor needed a budget increase from the Treasury. Following negotiations with Intel, a decision was made to cut the grant in half, to just $200 million.
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