Intel commits record $25 billion investment in Israel factory

Intel Corporation, the U.S.-based chipmaker, has unveiled plans to invest $25 billion in a new factory in Israel, making it the largest-ever international investment in the country.

The announcement was made by Prime Minister Benjamin Netanyahu, who highlighted the significance of the deal for the Israeli economy.

The factory, located in Kiryat Gat, is scheduled to begin operations in 2027 and is expected to employ thousands of people until at least 2035, according to the Israeli Finance Ministry. As part of the agreement, Intel will pay a 7.5% tax rate, an increase from the current 5%.

Having been present in Israel for nearly five decades, Intel has emerged as the country's largest private employer and exporter in the electronics and information industry.

In 2017, Intel acquired Israel-based Mobileye Global Inc, a company specializing in advanced driver-assistance systems, for $15 billion.