Intel is expected to double its center in Haifa to 40,000 square meters (approximately 12 acres) and add 1,500 more employees in addition to the 2,000 employees already working there. Intel's investment could reach USD 20 million, Israel's leading newspaper Yedioth Ahronoth reported Sunday.
In the past year, India increased the pressure on Intel to relocate the company's R&D center to India. The Haifa Municipality put a lot of effort in dissuading Intel from leaving, offering the company a municipal property across from Intel's existing center. The two buildings will be joined by a bridge.
The problem was the tight schedule. Considering the Israeli red tape, a permit for such a plan takes two to three years. Haifa Mayor Yona Yahav decided to take matters into his hands and personally appeared at all the different planning commissions with the plans. Intel thus received the permit within two months.
Intel has been situated in Haifa since the 1970s, where it developed the
Third Generation, the wireless cellular chip.
One of Intel's most important R&D centers
India offered Intel many benefits so that the company would move there. Intel, however, chose Haifa over India.
Recently, Intel decided to abandon its older-generation Pentium processors and base the future computer line on the new-generation family of processors, the Pentium M, which is the result of Israeli design and development.
Intel President and CEO Paul Otellini recently announced in a computer developers conference held in San Francisco that the company has decided to move on to the new family of processors, all of which were designed and developed in Intel's R&D center in Haifa and in Kibbutz Yakum.
This would be the first time that Intel structures itself on processors developed outside the United States. Israel, therefore, is becoming one of Intel's most important R&D centers worldwide.