Intel will spend $25 billion to build its factory in Kiryat Gat, Israel. As Israeli Prime Minister Benjamin Netanyahu wrote on Twitter, this is the largest investment by an international company in the country’s history.
Reuters, citing data from the Israeli Ministry of Finance, reports that the investment will go towards the construction of a plant for the production of microcircuits in Kiryat Gat. The company must open in 2027 and work until at least 2035, guaranteeing thousands of jobs.
Under the agreement, the US company will pay a 7.5% tax instead of the 5% rate generally accepted in the country. As the agency reports with reference to Intel, in nearly 50 years of being in Israel, the company has become the country’s largest private employer and exporter, as well as a leader in the local IT industry.
Intel’s statement emphasizes that the manufacturer’s operations in Israel have “played a critical role” in the company’s global success. The computer giant explains the desire to expand production capacities in an effort to “satisfy the production needs that will arise in the future.”
This spring, Intel reported the biggest quarterly loss in its history of $2.8 billion. Company revenue for the reporting period decreased 36% (to $11.7 billion) year-over-year.
Author:
Ahmed Sadulayev
Source: RB
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