Israeli Prime Minister Benjamin Netanyahu announced today that the US company Internethe, maker of chipswill open a new factory in Israel, the “elderly foreign investment” in the country, worth 25,000 million dollars.
Netanyahu called the deal “a tremendous achievement for the Israeli economy”as it is “the largest investment ever made by an international company in Israel”, as indicated when making the announcement at the weekly meeting with his cabinet.
The factory will be installed in Kiryat Gat, in the center of the country, and is scheduled to open in 2027 and employ thousands of people.
In addition, the American firm will pay for its income a tax rate of 7.5%, compared to the current 5%as reported by the Israel Ministry of Finance.
During its nearly five decades of operations in Israel, Intel has grown to become a “the largest private employer and exporter in the country and leader of the local electronics and information industry”, according to the company, which noted in a statement that its operations in Israel had “played a crucial role in the overall success of the company.”
In 2017, Intel bought Israel’s Mobileye Global, which develops and implements advanced driver assistance systems, for 15,000 million dollars, and last year it went public.
For the Netanyahu government, this is an important announcement after several companies in its booming high-tech sector have announced in recent months their intention to leave the country, and some have even begun to raise capital, before his judicial reform plan, which they fear will end up damaging the economy.
Source: EFE
Source: Gestion
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