Israel’s Knesset finance committee approved a NIS 700 million ($185 million) grant to the Intel company to fund an expansion for its Kiryat Gat plant. Intel announced its plan to invest NIS 17 billion ($4.5 billion) in the expansion in May when it submitted its plan to the government for approval.
The new government grant is conditioned on Intel’s investment and its commitment to hire 250 new employees, as well as business arrangements with local vendors and retailers to the tune of NIS 2.1 billion ($555 million) a year.
Intel is expect to apply for further Israeli government grants for 2019 and 2020, and has announced its intention to expand its manufacturing capabilities in Israel, Ireland and Oregon.
In 2014, Intel received a NIS 1.7 billion ($450 million) grant for its NIS 23.5 billion ($6.2 billion) facility in Kiryat Gat, and secured a 5 percent corporate tax rate, much lower than the standards 23 percent.