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Intel will invest $5 billion to significantly expand the company’s factory in Kiryat Gat, Israel’s Economy Ministry announced in a statement on Tuesday. The computing giant will receive a half-billion dollar grant in return for the investment; it is the largest grant Israel has ever given to a corporation, according to the ministry.

As part of the deal, Intel will hire 250 additional Israeli employees, and will purchase roughly NIS 3 billion worth of materials from Israeli vendors.

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“This is tremendous news for the economy, which expresses confidence in Israel, and positions us as a leading global economy,” Finance Minister Moshe Kahlon said.

“There was competition with several countries for Intel’s investment, and for the past two years, I have worked with the vice president of Intel International in order to bring the investment to Israel,” Kahlon added, “until today’s announcement. “In a week of Israeli successes, we are once again on the map, this time the map of the global economy.”

“The Finance Ministry aplauds Intel International’s decision to make another substantial investment in Israel,” Finance Ministry Director-General Shai Babad added.

The investment, which will be spread out over the next two years, is expected to inject new life into the hi-tech sector in the periphery and hopefully to spur employment as well.

“The Ministry of Finance has set a goal of bringing foreign investment to Israel and is successfully carrying that out,” Babad said.

Yona Schnitzer and TPS provided content for this report.

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Hana Levi Julian is a Middle East news analyst with a degree in Mass Communication and Journalism from Southern Connecticut State University. A past columnist with The Jewish Press and senior editor at Arutz 7, Ms. Julian has written for Babble.com, Chabad.org and other media outlets, in addition to her years working in broadcast journalism.