Against the background of the reform promoted by the government in the legal system, the management of Intel Israel requested to postpone a meeting between its production teams and teams of the Ministry of Economy and Finance due to the fear that political parties would use the meeting as aLet’s promote political agendas. Intel wanted to stay away from the controversy surrounding the legal reform and preferred not to be used as a fig leaf in the meeting with government representatives.
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Intel asked to meet the representatives of the new government in order to start discussions related to upgrading its production system, as it is doing these days in other countries such as Germany and Ohio in the USA. The purpose of the discussions: examining cooperation with the government to receive grants and tax benefits at the same time as an investment of over 20 billion dollars in Israel by the American company.
Every few years, Intel, like other chip manufacturing plants in the world, is required to upgrade its manufacturing plant or build a new plant in order to produce chips with newer technology. At the same time, the cost of setting up a factory soars accordingly. The new factory built these days in Kiryat Gat, Fab 38, requires at least 10 production machines using ultraviolet (EUV) technology that cost 150-200 million dollars per machine. The last time the state made commitments to Intel, it was in 2019, when Intel received benefits worth 3.2 billion shekels for the establishment of a factory costing 10 billion dollars.
The new chip law in the USA and incentive programs in the European Union, together with the political instability in Israel and the protest against the legal reform put Intel Israel in an uncertain place, and give the global management additional reasons why they should choose countries such as Germany, Ireland or the USA to establish the Her next ventures.
Intel did not receive a response to the news.