Intel asks Israel for $490 million towards fab, says report

Intel Corp. has appealed to the government of Israel to approve an enlarged grant to help it build a wafer fab in the country, according to a Ha'Aretz newspaper report online.

The government approved a grant of $400 million four years ago, but the company has asked for $490 million, arguing that a larger plant would create an additional 1,800 jobs, according to the report. The report also stated that Intel was eager to do business with Israel because it was not likely to receive grants from within the U.S. or from Ireland.

The Irish government dropped its bid to get a 1.6 million euro (about $2.1 billion) grant for an Irish wafer fab expansion sanctioned by the European Union, some time beforeMarch 2005 the time the Irish government said it believed Intel would go ahead with an additional fab without the financial incentive.

Although Israel is geographically close to Europe and has many dealings with Europe, it is not a part of the European Union and does not need to seek permission to provide incentives.

However, both the Israeli Trade & Industry and the Finance Ministries rejected Intel's appeal for enlarged funding, in June, according to the Aretz> report. Since then Intel has made renewed appeals which have been sent to the director general of the Trade Ministry and to treasury director-general Joseph Bachar, the report said citing unnamed sources.

- Peter Clarke

EE Times