Intel and the Israeli government recently signed another industrial cooperation agreement. According to the agreement. Intel will implement a mutual purchase plan worth USD 810 million during the next ten years.
The agreement will enhance Intel's investment policy for developing industries and new technologies in Israel. The agreement followed a government grant of USD 540 million that Intel will use to build a second plant in the southern town of Kiryat Gat, at a total investment of USD 4.2 billion.
The Industrial Cooperation Authority (ICA) of the Ministry of Industry, Trade and Labor will supervise the agreement's implementation.
The previous agreement Intel signed in 1996 for a 10-year duration followed a USD 600 million grant it received from the Israeli government in 1995. In return, Intel was tasked with formulating a "supplier development program" with the Israeli industry.
As part of the program, Intel examined more than 100 Israeli companies and new technologies, and trained more than 40 Israeli companies to become authorized Intel providers. During the past ten years, the Israeli suppliers' sales to Intel totaled USD 1.2 billion.
ICA Director-General Bina Bar-On said that Intel's reciprocal purchases totaled USD 1.2 billion, which is more than what Intel agreed upon in the supplier development program. She added that Intel's willingness to invest testifies to the success of its mutual investment and purchase model in Israel.