Intel to invest another $4.5 billion to upgrade Israeli plant

Israeli business newspaper Globes writes Intel will invest $4.5 billion in Israel this year. The facility in Kiryat Gat is currently being upgraded for 10nm production and will later be upgraded to 7nm.

In exchange for its investment, Intel will reportedly get a 20-30 percent subsidy from Israel's government. The chip giant already invested $6 billion in Kiryat Gat during 2016 and 2017.

Sources close to the meetings in recent weeks between Intel and Israeli government officials believe that the package agreed between the Israeli government and Intel in exchange for the investment, at its plant in Kiryat Gat, includes a grant of 20%-30% of the investment as part of the Law for the Encouragement of Capital Investment, land exempted from a tender, subsidy on development costs and reduced corporation tax.

Kiryat Gat is already one of the world's most advanced chip fabs after Intel invested $6 billion in expanding and upgrading it during 2016 and 2017.