MOUNTAIN VIEW, Calif.--The Israeli government is attempting to force Intel Corp.’s hand on a decision to potentially build a new fab in the north of the country in exchange for a 1 billion shekel ($264.37 million) grant, according to media reports.
Intel has been putting off the decision of where to build its new fab, and reports in the Israeli media say the country’s Ministry of Finance and Ministry of Industry, Trade and Labor are losing patience with the chip maker.
Israel has now given Intel until early March to make its decision, in an ultimatum that would see the loan expire and the money used as a grant to another multinational, should Intel fail to respond within the timeframe.
Intel had asked for a $600 million grant from the Israeli government back in mid-2011, pointing to the firm’s already large $5 billion investment to upgrade its Kiryat Gat fab, a facility regarded as the most advanced chip manufacturing plant in the world.
Israel, however, only agreed to $264 million, with the condition Intel set up a new fab and assembly plant in the Galilee, specifically, Beit She'an. Building a fab in the area would create hundreds of local jobs in an area which has seen relatively little tech development to date.
Intel –which has been operating in Israel since 1964-- is said to be considering its options, with some rumblings that the firm could choose to plow its multibillion dollar investment into Ireland instead. The firm has also said it will not make a decision until the second quarter of 2012.
well.. why not... they have a very good experience in israel.,., those guys meet all the expectations from them , brign LOT of added value in creativity, commitments, innovations and did DELIVER ... right ?
I believe there are many factors Intel looks at when deciding where to locate a wafer fab - besides just basic monetary concerns. The influence of each of the many variables considered probably changes rapidly over time. I for one would not be surprised at just about any location Intel might choose. But also, looking back over the years, there are a few locations that were "chosen" by Intel at one point in time, but were never actually built on.
I cannot understand why would Intel build a state-of-the-art Fab in Israel? That part of the world is very unstable. Ireland or indeed the UK (given Ireland's Euro uncertainties) would be much better choice.
Ireland would be better for them long term IMO OC
"Intel –which has been operating in Israel since 1964-- is said to be considering its options, with some rumblings that the firm could choose to plow its multibillion dollar investment into Ireland instead."
however, if they are going to build new for the next 10 year cycle+, then they may be even better placed to also seriously consider also moving mass production and infrastructure to mainland Britain,to the "north west" greater Manchester UK, and surrounding areas where the original world industrial revolution took place and begin a new valley revolution major hub there.
the new Uk con/lib Gov and global financial institutions located there are probably in a far better position to help find the financial tax incentives and other help etc given the right push.
i cant help but think its far better the latest brain drain and mass investments in the future be US-UK centred rather than elusively one way to the far east, but time will tell.
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