(Reuters) - Intel Corp will invest 40 billion shekels (£8.3 billion or $10.9 billion) on a new chip-making factory in Israel, the Israeli finance minister said on Monday, the latest multi-billion dollar investment in the country by the U.S. semiconductor giant.
“Intel’s global management has informed us about its decision to invest another 40 billion shekels in Israel, an unprecedented decision that is expected to bring thousands of jobs to the south (of Israel),” the country’s finance minister Moshe Kahlon said on Twitter.
The news follows a commitment by Intel in May last year to invest about 18 billion shekels ($5 billion) to upgrade its existing factory in the southern Israeli city of Kiryat Gat between 2018 and 2020.
That agreement had included a promise by Intel to spend 3 billion shekels on local suppliers.
Intel is planning to build its new factory at Kiryat Gat, the Globes news website reported earlier on Monday.
The agreement with Israel could include an exemption from the tender obligation with the government, and Intel is already preparing physical infrastructure to build the plant in Kiryat Gat, the report added.
Intel said it will submit a business plan to the Government of Israel for continued investment in the company’s Kiryat Gat manufacturing site.
The chipmaker said it will not disclose any details, including the schedule, costs and technologies of the new project in Israel.
Santa Clara, California-based Intel is one of the biggest employers and exporters in Israel, where many of its new technologies are developed.
Reporting by Arjun Panchadar and Subrat Patnaik in Bengaluru; Editing by Sai Sachin Ravikumar and Sherry Jacob-Phillips