Intel in talks to invest $10 bln in Israel - report

TEL AVIV Tue Jul 2, 2013 2:37pm IST

People visit the Intel booth at the 2013 Computex exhibition at the TWTC Nangang exhibition hall in Taipei June 4, 2013. REUTERS/Pichi Chuang/Files

People visit the Intel booth at the 2013 Computex exhibition at the TWTC Nangang exhibition hall in Taipei June 4, 2013.

Credit: Reuters/Pichi Chuang/Files

Related Topics

Stocks

   
Priyanka Gandhi Vadra, daughter of Congress party chief Sonia Gandhi, adjusts her flower garlands as she campaigns for her mother during an election meeting at Rae Bareli in Uttar Pradesh April 22, 2014. REUTERS/Pawan Kumar

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

TEL AVIV (Reuters) - Intel Corp(INTC.O), the world's No. 1 chipmaker, is in talks with the Israeli government about a $10 billion investment in Israel, a senior government official told the Yedioth Ahronoth newspaper on Tuesday.

"Intel is talking with us about a huge investment of $10 billion," Nahum Itzkovich, the new director of the Economy Ministry's Investment Centre, said in his first interview since assuming office. "We are engaged in intensive negotiations with Intel."

Under discussion is an investment of $3 billion to upgrade the existing Fab 28 factory in the southern town of Kiryat Gat, and another $7 billion in a new factory in the town over the course of 10 years, he said.

The government has set up a negotiating team that includes Economy Minister Naftali Bennett.

"Contrary to Intel's previous investment, we are trying this time to create a long-term process in which each side will commit for at least 10 years," Itzkovich said.

He did not say how much of a grant or subsidy the government was considering providing Intel for the new investment.

A spokesman for Intel declined to comment on the report and officials at the ministry were not immediately available for comment.

Intel's last overseas investment was made in Ireland and if it does not build a factory in Israel this time the country could find itself no longer relevant to Intel, Itzkovich said.

"We are talking about a manufacturing facility that has incredible impact on the Israeli economy," he said. "That said, it is incumbent upon us to examine the worthwhileness and to explain to the public what the benefits are and what the considerations are if we approve the investment."

Intel will build chips over the next two to three years with features measuring just 14 nm in Ireland and the United States but the company is already thinking about where it will produce 10 nm chips. Intel Israel executives said in February they would like to see 10 nm production in Israel.

Intel has invested $10.5 billion in Israel in the past decade, including $1.1 billion in 2012, and has received $1.3 billion in government grants. (Reporting by Tova Cohen)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Legal Trouble

REUTERS SHOWCASE

Hacking Threat

Hacking Threat

All at sea: global shipping fleet exposed to hacking threat.  Full Article 

Mt. Gox Update

Mt. Gox Update

Tokyo Court orders bankruptcy trustee to begin Mt. Gox liquidation .  Full Article 

Net Neutrality

Net Neutrality

U.S. regulators to propose new net neutrality rules in May.  Full Article 

Facebook Results

Facebook Results

Facebook Q1 revenue grows 72 percent on rising mobile ads.  Full Article | Related Story 

Huawei Shrugs

Huawei Shrugs

China's Huawei says reports of NSA spying won't impact growth  Full Article 

Betting on Content

Betting on Content

AOL, Microsoft lure advertisers with TV-style shows.  Full Article 

Restructuring Plans

Restructuring Plans

Zynga's Pincus withdraws from operations amid turnaround.  Full Article 

Security Threat

Security Threat

FBI warns healthcare sector vulnerable to cyber attacks.  Full Article 

Online Streaming

Online Streaming

Amazon grabs rights to stream older HBO shows.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage