U.S. chipmaker Intel plans to spend 40 billion shekels ($10.89 billion) to build a new manufacturing plant in Israel and has asked the Israeli government for a grant amounting to 10 percent of the amount, a local news website reported on Monday.
Talks on the investment between Intel and Israel’s Ministry of Finance began weeks ago and are still ongoing, the report by the Globes website said, adding that Intel’s global management is yet to make a final decision.
The investment, in the southern Israeli city of Kiryat Gat, could eventually be lower, Globes reported, citing unidentified sources.
Intel declined to comment when contacted by Reuters.
The news follows an earlier commitment by Intel to invest about 18 billion shekels ($5 billion) to upgrade its existing factory in Kiryat Gat between 2018 and 2020.
The new agreement with Israel could include an exemption from the tender obligation with the government, and Intel is already preparing physical infrastructure to build the plant in Kiryat Gat, Globes reported.
Santa Clara, California-based Intel is one of the biggest employers and exporters in Israel, where many of its new technologies are developed.