SANTA CLARA (dpa-AFX) - The Israeli parliamentary finance committee has approved a NIS 700 million or $185.5 million grant to Intel, to fund company's planned expansion of one of its local plants, according to the reports.
Located in Kiryat Gat, a small town in Israel's south, Fab 28 manufactures chips for servers, workstations, mobile computers, and desktops.
Intel announced its intention to expand the facility with a NIS 17 billion investment in May when it submitted the plan for government approval.
The grant is conditioned on Intel's previously announced investment, on the company's commitment to hire 250 new employees, and on annual deals worth NIS 2.1 billion or around $560 million the company agreed to ink with local vendors and retailers.
Last week, Intel announced it intends to expand its manufacturing capabilities in Israel, Ireland, and Oregon. The company stated it expects to start the multi-year construction in 2019. The company is expected to apply for further government grants in Israel for the years 2019 and 2020.
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