Intel Global will build a new factory in Kiryat Gat with an investment of about 25 billion dollars. Finance Minister Smotrich: “An expression of confidence in the Israeli economy”.

The global company Intel will build a new factory in Israel with a huge investment of about 25 billion dollars. Today (Sunday), Finance Minister Bezalel Smotrich and Budget Commissioner Yoav Gerdos announced that negotiations with the global Intel company have been successfully concluded and agreements have been reached regarding the company’s intention to invest in the establishment of a new plant in Kiryat Gat with an investment of approximately 25 billion dollars.

As part of the investment, the company will employ thousands of additional workers in Kiryat Gat. In addition, it was agreed that there would be a significant increase in the tax rate that the company would pay to the state and it would rise from five percent to seven and a half percent. As far as Israel is concerned, this is an unprecedented investment. According to the assessment of sources in the Treasury, the investment will yield significant macroeconomic benefits for the Israeli economy, especially in light of the apparent slowdown in the global economy and the ceaseless war to attract technology companies.

Intel is one of the world’s leading companies in the field of manufacturing and designing microprocessors and integrated circuits. The American company is valued at a high of 150 billion dollars and employs approximately 130,000 workers worldwide, of which approximately 12,000 are in Israel.

Prime Minister Benjamin Netanyahu welcomed the achievement and said: “I welcome a tremendous achievement for the Israeli economy – NIS 90 billion – the largest investment by an international company ever in Israel. This is a great expression of confidence in the Israeli economy, in stark contrast to all the false reports against us.”

Finance Minister Bezalel Smotrich said: “The choice of the global Intel company to make the investment in Israel is an expression of confidence in the Israeli economy at a time of global uncertainty. An investment of unprecedented magnitude in the State of  will affect the growth of the Israeli economy in the coming years and will promote high-quality, productive and high-wage employment in localities the periphery”.

The Commissioner of Budgets, Yogev Gerdos, said of the agreement: “Intel’s investment, amounting to approximately NIS 90 billion, will yield significant economic benefits for the State of Israel in general and the southern region in particular. I thank the management of Intel Israel and the professional team in the budget department, led by the deputies of Kfir Bett, for managing the procedure. The negotiations with the company were conducted in a long and professional manner on the basis of economic models to examine the benefits of the investment with the aim of maximizing the value for the Israeli public while promoting the investment in Israel in the face of the various alternatives available to the global company Intel.