SAN JOSE, Calif. – There is still a dispute over the funding of Intel Corp.’s fab in Israel, according to a report. That can be seen here.
As reported, Intel wants to locate a wafer fab in Kiryat Gat, Israel. Intel is asking for $400 million out of an expected $2.7 billion cost of building and equipping its second fab in the southern Israel location. However, the Ministry of Industry, Trade and Labor is reportedly offering only between $200 million and $250 million.
Now, there is still a dispute. ''The recent government decision, in principle, to give Intel 741 million shekels ($205 m.) to subsidize the expansion of its new Fab 28 semiconductor factory in Kiryat Gat is a perfect example. The decision still needs final approval by the Finance Ministry, Knesset committees and by Intel corporation. Fierce debate rages,'' according to the Jerusalem Post.
Where is the controversy here? Every corporation will try to get the best deal anywhere else in a world considering all the factors (costs, people, resources, etc)...this article sounds like business as usual...Kris
The referenced article is a good example of "why, and why not" subsidize Intel's fab expansion to Kiryat Gat. Valid arguments exist on both sides.
I was working for Intel during the time of Dov Frohman, who is largely credited with negotiating with Intel and the Israeli government to set up Intel Israel. Like all decisions, there were selfish motives all around, not the least of which was Dov's desire to return to Israel.
Regardless, all parties took a leap of faith, and thru dedication to the vision and the work, Intel Israel became the major success it is today. In the process, it helped put Israeli technology and engineers on the map as well. It has become a major part of the Israeli technical industries.
Intel in Israel has been a long term commitment and I would hope neither party tries to look at it as a short term decision or a hard black and white decision. I am sure that at the time of the original Intel Israel inception no one could have guessed it's ultimate success and contributions, let alone the $$$ poured back into the country as well as Intel's coffers. Who can guess what the Kiryat Gat facility might ultimately yield (no pun intended).
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