The Silicon Valley giant informed the government of its decision to invest $10 billion in a new plant, Israel's finance ministry says. Intel currently employs 11,700 people in its Kiryat Gat site.

Intel purchased Mobileye, an Israeli company that develops autonomous driving technology, for over $15 billion in 2017. Photo: File March 13, 2017.
Intel purchased Mobileye, an Israeli company that develops autonomous driving technology, for over $15 billion in 2017. Photo: File March 13, 2017. (Sebastian Scheiner / AP)

Intel said it is expanding its operations in Israel, where government ministers said the US computer chipmaker will invest some $10 billion in a new plant.

"Intel today announced it will submit a business plan to the government of Israel for continued investment in the company's Kiryat Gat manufacturing site," a statement from Intel's Israeli representatives said on Tuesday.

Finance Minister Moshe Kahlon said late Monday he was informed by Intel of their decision "to invest another 40 billion shekels, an unprecedented decision expected to bring thousands of jobs to the south."

Intel is expected to build the plant adjacent to its existing Kiryat Gat facility, a small city in southern Israel, and hire up to 2,000 new employees once it is up and running.

Last year, Intel had already decided on a $5 billion upgrade to the site in Kiryat Gat.

In 2017, Intel closed a $15 billion deal to buy Israeli autonomous technology firm Mobileye, the country's biggest cross-border high-tech deal ever.

The Silicon Valley giant currently employs 11,700 people in Israel in its Kiryat Gat plant and development centres across the country, in addition to 1,170 Mobileye staff.

Intel's exports from Israel reached $4 billion in 2018, according to the company.

Source: AFP