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Israel to grant Intel $525 million for wafer fab

Posted: 15 Nov 2005 ?? ?Print Version ?Bookmark and Share

Keywords:intel? israel? kiryat gat? wafer fab?

Israel's government has approved a grant of $525 million to Intel Corp. to help the worlds largest chip maker build a wafer fab in the southern town of Kiryat Gat, the site of an existing chip plant, according to online reports.

The decision to support Intel in building a second wafer fab was leaked by Israeli prime minister Ariel Sharon in July 2005, although some confusion remained over the level of subsidy Intel would receive.

Intel had been approved to receive $400 million roughly 10 percent of its proposed $4 billion spend but it was reported to have demanded more money.

The Ministry of Industry, Trade and Labour said that the $525 million grant represented 12.5 percent of Intels proposed $4.2 billion investment in the new plant. Intel is expected to employ 2400 people at the fab and create jobs for another 2000 people indirectly on top of the 3000 people it already employs.

The Intel grant was approved because a study by the Industrial Development Bank of Israel found the companys investment would be worthwhile, according to Globes online report. That report said $3.5 billion of the $4.42 billion investment has been recognized for purposes of a 15 percent state grant.

- Peter Clarke

EE Times

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