Intel invests 600 million dollars in Israel
The blue chip company aims to increase its R&D in the country.

Intel Corp (NASDAQ: INTC) said Sunday that it will invest another $ 600 million in Israel to expand its research and development (R&D) and confirmed it will spend $ 10 billion on a new chip factory. The announcement came during a one-day visit by Intel Chief Executive Pat Gelsinger to Israel as part of a European tour that included Germany and Belgium last week. Intel is investing $ 400 million to transform its Mobileye (F: 0ME) unit, headquartered in Jerusalem, into a research and development campus dedicated to developing technologies for self-driving cars. Another $ 200 million will be invested in the construction of an R&D center, called IDC12, in the northern port city of Haifa adjacent to the current development center. Intel said the "mega-chip design" facility will have a capacity of 6,000 employees. Gelsinger, who is on his first trip to Europe since taking the helm of the company in February, predicted "a vibrant future for Intel and Israel for the next few decades" in a statement released on Sunday. In recent years, Intel has bought three Israeli tech companies - Mobileye in 2017 for more than $ 15 billion, artificial intelligence chip maker Habana in 2019 for $ 2 billion, and Moovit a year ago for $ 1 billion. During his brief visit, Gelsinger met Intel and Mobileye management, as well as Israeli Prime Minister Benjamin Netanyahu. Israel's Treasury Department said in early 2019 that Intel would receive a $ 1 billion grant to build a $ 11 billion chip factory, although Intel was unwilling to confirm the amount at the time. On Sunday, Intel said the investment would be $ 10 billion and the first phase of construction had begun. The current Fab 28 at the company location in Kiryat Gat produces chips with a size of 10 nanometers (nm). Intel hasn't announced whether the new plant will produce smaller chips, which can increase efficiency, but in March it said it would build two 7nm chip plants in Arizona for around $ 20 billion. Intel Israel exports rose from $ 6.6 billion in 2019 to a record $ 8 billion in 2020, accounting for 14% of total high-tech exports and 2% of Israel's GDP. Intel is the largest employer in Israel's high-tech industry with almost 14,000 employees.





