SAN JOSE, Calif. - Intel Corp. has obtained a grant from the Israeli government to build a 300-mm fab in that nation, according to a report from Globes.
The trouble? Intel is still reportedly asking for more.
Intel will receive a 741 million shekel grant ($209 million) from the Investment Promotion Center, according to the report. This will be part of Intel's $2.7 billion investment in Fab 28, a 300-mm plant in Kiryat Gat.
As part of the grant, Intel promised to employ 3,100 people at the fab, according to the report. ''The company also promised to make a "best effort" of more than NIS 1 billion in reciprocal procurements,'' it added.
Intel has been operating in Israel since 1974. Fab 28 was announced several years ago.
But for some time, Intel has been asking for more. It has been asking for $400 million out of an expected $2.7 billion cost of building and equipping its second fab in the southern Israel location. So as a result, there has been a dispute. The Ministry of Industry, Trade and Labor is reportedly offering only between $200 million and $250 million.
Intel is saying one thing-and doing another. Paul Otellini, the president and CEO of Intel Corp., recently called for the U.S. government to provide tax concessions for companies that build factories in the United States. Otellini, speaking during a presentation at a Council on Foreign Relations event in New York, said that the concessions, either in the form of tax credits or tax holidays would help create jobs and would make the United States competitive with other countries.
Intel recently confirmed speculation that it will build a new R&D wafer fab in Hillsboro, Ore., and upgrade other existing U.S. facilities for 22-nm production at a total investment of between $6 billion and $8 billion.
The investment will create 800 to 1,000 permanent high-tech jobs and 6,000 to 8,000 construction jobs, Intel (Santa Clara, Calif.) said. The new development fab in Oregon, to be known as D1X, is slated for R&D startup in 2013.
However, Intel has obtained a grant from the Israeli government to build a 300-mm fab in that nation. In addition, Intel recently begun operations within its first fab in China. And after some delays, Intel Corp. has officially opened its new IC-packaging and test plant in Vietnam.