Intel plans to spend 40 billion shekels ($10.89 billion) to build a new manufacturing plant in Israel and has asked the Israeli government for a grant amounting to 10 percent of the amount, a local news website reported on Monday.
Talks on the investment between Intel and Israel’s Ministry of Finance began weeks ago and are still ongoing, the report by the Globes website said, adding that Intel’s global management is yet to make a final decision.
Intel declined to comment.
Intel has already announced plans to invest about 18 billion shekels ($5 billion) to upgrade its existing factory in Kiryat Gat between 2018 and 2020.
Intel is one of the biggest employers and exporters in Israel, where many of its new technologies are developed.
Update: Israel's Finance Minister Moshe Kahlon said late on Monday he was informed by the chip giant that it would invest about 40 billion shekels ($11 billion) in a new factory.
Intel said it would submit a business plan “for continued investment in the company’s Kiryat Gat manufacturing site” in central Israel, but did not disclose details, including the schedule, costs and technologies.