Ariel Sharon, the Israeli Prime Minister, has been informed by Intel's head Craig Barett that the chip giant plans to build a new $4 billion fab in Kiryat Gat (in southern Israel).
The ministry said its Investment Centre is prepared to give Intel a $525 million grant for the chip manufacturing plant which would employ 2,000 employees in Kiryat Gat. By the end of July the company will submit its plan to the Investment Centre for review.
Intel currently employs 6,000 workers in a couple of manufacturing plants and development centres in Israel. Last year Intel's Israeli subsidiary exported nearly $1.2 billion of products.