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.
The grant is split into NIS 678 million (186 million), spread over eight years, with an option for an additional NIS 63 million ($17 million0 in exchange for expanding the R&D center in the periphery or investing in research and development activities through Israeli research institutes.
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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