Israel’s economy ministry said that Intel Corp committed to purchasing ILS 15 billion ($4 billion) of Israeli products and services for the next six years since they have begun a massive expansion of their local operations.
The California-based chipmaker will be receiving an Israeli government grant for 9 percent of their planned ILS 40 billion investment which will help them expand their manufacturing operations in the country.
The condition posed by the economy ministry stated that Intel will have to spend ILS 15 billion in “reciprocal procurement” from Israeli companies.
Economy Minister Eli Cohen said that an agreement of this magnitude will be the leading cause of growth for many companies in the economy, and it will also help them increase their activities and lead to the success in international markets as well”.
Intel has been one of the biggest employers and exporters in Israel, and many of their new technologies are being developed.
The expansion of their Kiryat Gat manufacturing site will add in 1,000 new employees to Intel’s workforce which is currently almost 13,000 in Israel.
Last month Intel stated they had their plans of site expansion projects in Ireland, Israel and at their U.S. plant in Oregon since they had been looking out to diversify their products for a broader set of customers, and this included auto safety and wireless connections for the mobile phones.
Intel’s exports from Israel has increased from $300 million in 2018 to a whopping $4 billion, whereas they bought $1.7 billion of products from the local companies.