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Intel to set up a Chip Plant in Israel

Israel

The cost of the plant is 25 billion US$, out of which 3.2 billion US$ would be provided as grant by Israel.

Amid the war situation in Israel, Intel has announced to set up a new $25 billion chip manufacturing plant in southern Israel,  Israel government has also agreed to contribute $3.2 billion grant for this effort of Intel. As per the Reuters, Ofir Yosefi, deputy director general of Israel’s Investments Authority, said Intel chose a higher grant and tax rate over an offer for a lower grant and lower tax rate. He told Reuters the process took months since a grant of such magnitude needed a review and independent analysis that it was economically viable. It was determined Israel would reap much higher fiscal and economic benefits, he added.

“This investment, at a time when Israel wages war against utter wickedness, a war in which good must defeat evil, is an investment in the right and righteous values that spell progress for humanity,” Finance Minister Bezalel Smotrich said.

Intel, whose investment will be over five years, will pay a corporate tax rate of 7.5% instead of 5% previously. The normal tax rate is 23%, but under Israel’s law to encourage investment in development areas, companies receive large benefits.

The wire also said that In addition to the grant that amounts to 12.8% of the total investment, the chipmaker also committed to buy 60 billion shekels ($16.6 billion) worth of goods and services from Israeli suppliers over the next decade, while the new facility is expected to create several thousand jobs.

As per Aljazeera, this investment of Intel is the great support to Israel amid appeal from most of the countries in UN to make a cease fire.

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