JERUSALEM (Reuters) - Israel will give Intel Corp (INTC.O) a 700 million shekel ($185 million) grant in return for a planned $5 billion expansion of its production operations in Israel.
Intel is one of the biggest employers and exporters in Israel, where many of its new technologies are developed. Earlier this year it submitted plans to upgrade its Kiryat Gat manufacturing plant in southern Israel.
The Finance Committee in Israel’s parliament has now approved a 700 million shekel grant for the company, a statement from the committee said.
It noted that along with the $5 billion investment, the government expects Intel to hire 250 new employees and make 2.1 billion shekels in local purchases.
Intel may decide to expand its Israeli operations even further in 2019, according to Israel’s economy minister.
“Intel will make, in my estimation, another significant investment in the coming year,” Economy Minister Eli Cohen said last week at a business conference in Jerusalem.
($1 = 3.7756 shekels)
Reporting by Ari Rabinovitch and Steven Scheer; Editing by Tova Cohen