Intel to invest record $25bn in chip factory in 'Israel' starting 2027

By Al Mayadeen English
Source: Agencies
18 Jun 2023 19:26
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Israeli Prime Minister Benjamin Netanyahu announces the largest-ever investment of $25 billion as Inten Corporations seeks to build a new chip manufacturing facility in "Israel".

In this Oct. 3, 2018, file photo, the Intel logo appears on a screen at the Nasdaq MarketSite, in New York's Times Square. (AP)

Israeli Prime Minister Benjamin Netanyahu, on Sunday, announced "Israel's" largest-ever investment worth $25 billion as Intel Corporation looks to build a new chip manufacturing facility in occupied Palestine by 2027.

"This morning we announced that agreement has been achieved in principle between Intel and the Finance Ministry on a huge and unprecedented investment by Intel in Israel, in a chip manufacturing plant, that will use the most advanced technology in the world," said Netanyahu during the cabinet meeting before further adding that "$25 billion will be invested in this plant … This is the largest investment..."

Intel's investment, according to the new agreement, would be expected to launch operations in 2027 with a tax rate of 7.5%, which is 2.5% higher than usual. The factory will be operated by Intel until 2035 as reported by Israeli media, and is expected to offer higher salaries than the average salaries in the tech industry.

While Netanyahu made plans for 2027, "Israel" in 2023 has continuously proven to be unstable. In terms of security and deterrence capabilities, Israeli media, on several occasions, reported that its deterrence capabilities are crumbling as the Palestinian Resistance has managed to strike "Tel Aviv" and conduct liberation operations in Palestine's 1948 occupied territories.

In parallel, the Israeli schism has also come to show that the Israeli occupation government is faced with a deep-rooted conflict that had paralyzed major cities as protests continue for the 24th consecutive week against the judicial reforms.

Germany shuts down Intel's hiked subsidies demand for chip plant

Last Sunday, Germany declined higher subsidies demanded by American tech giant Intel (INTC.O) that were requested to establish a semiconductor production plant in the European country, the Financial Times reported.

Germany's Finance Minister Christian Lindner said the government does not have the funds to finance such an inquiry, stressing that Berlin aims to reduce its spending and not spread it.

The Minister's comments came in response to a request made by Intel for the German government to approve a 17-billion-euro ($18-billion) subsidy to build its chip factory. "There is no more money available in the budget," Lindner said in an interview according to FT.

"We are trying to consolidate the budget right now, not expand it."

While the US chip producer was scheduled to receive 6.8 billion euros in backing from the government for its plant, higher energy and construction costs made Intel demand 10 billion euros to compensate for the rising expenses, the newspaper added.