Word hit the Internet that Intel is in talks with Israeli authorities to invest a $10 billion to increase its chip production in the country. According to Nahum Itzkovich, the new director of the Economy Ministry's Investment Centre, the chip giant is considering to spend $3 billion to upgrade the existing Fab 28 facility in the southern town of Kiryat Gat, while reserving another $7 billion to build a new factory in the town over the course of ten years.
Itzkovich did not share details about how much a grant or subsidy Intel is fishing for, but noted that contrary to Intel's previous investment, the government is now trying to forge a long-term deall in which each side will commit for at least ten years. Intel invested $10.5 billion in Israel in the past decade, and has receives $1.3 billion in government grants.
Intel's last overseas investment was made in Ireland and if it does not build a factory in Israel this time the country could find itself no longer relevant to Intel, Itzkovich said.
"We are talking about a manufacturing facility that has incredible impact on the Israeli economy," he said. "That said, it is incumbent upon us to examine the worthwhileness and to explain to the public what the benefits are and what the considerations are if we approve the investment."
Intel will build chips over the next two to three years with features measuring just 14 nm in Ireland and the United States but the company is already thinking about where it will produce 10 nm chips. Intel Israel executives said in February they would like to see 10 nm production in Israel.