JERUSALEM May 5 Chip giant Intel Corp
submitted a plan to Israel's government to invest 20 billion
shekels ($5.8 billion) in upgrading its plant in southern
Israel, the Economy Ministry said on Monday.
The ministry said it promised Intel it would work to
expedite bureaucratic procedures as much as possible to develop
and promote employment in the country's south.
As part of the investment, Intel would receive a government
grant that Israeli media estimated at about 1 billion shekels.
They also reported that Intel would add about 1,200 new
It is widely believed that Intel's investment is aimed at
shifting to new 10 nanometre technology.
A company spokesman declined to comment but Intel in January
had said it would decide on the location of a 10 nanometre plant
this year. Israel was one of a number of countries competing to
host the new plant.
Intel Israel's exports, mainly from its Fab 28 plant in
Kiryat Gat, amounted to $3.8 billion in 2013, down from $4.6
billion the year before.
In its 40 years in Israel, Intel has invested $10.8 billion
in plants and development centres and received $1.5 billion in
grants. It employs nearly 10,000 people.
($1 = 3.4560 shekels)
(Reporting by Steven Scheer)