Boston, MA 12/20/2013 (wallstreetpr) – The U.S. semiconductor maker Intel Corporation (NASDAQ:INTC) is being wooed to increase its investment in Israel. Sources say that Israeli government is ready to offer Intel Corporation up to 10 percent grant on its overall investment in the country. The government is keen to have the company upgrade its existing plants and also build entirely new plants.
Intel Corporation (NASDAQ:INTC)’s investment in Israel is important for the country as it contributes a bigger chunk of its industrial export earnings as well as creating employment opportunities.
The grant is structured such that Intel Corporation will gain a certain percentage of between 3 and 4 for upgrading its factories and up to 10 percent for installing new factories. Currently Intel Corporation has a 22-nanometer technology chip plant in Israel which is expected to be upgraded to 10-nanometer technology. And the government is saying it will cater for up to 4 percent of the cost of this facility upgrade.
Over the past decade, Intel Corporation (NASDAQ:INTC) has received about $1.3 billion in grant from the Israeli government after investing an estimated $10.5 billion over the period. Currently the company employs about 8,500 people in Israel.
There is a lot at stake however as the company is faced with the challenge of deciding whether to upgrade its facilities in the U.S., Israel or Ireland. It should be called that about two years ago when Intel Corporation was upgrading its production facilities, it chose Ireland over Israel partly because the country offered it a sweeter deal and partly because facilities there were in dire need of upgrade.
So Israel is upping its offer this time around and also pressing on Intel Corporation to see that its 22-nanometer plant in Kiryat Gat needs an upgrade as well. With this in mind, it looks like Intel Corporation (NASDAQ:INTC) could be bowed this time around to boost its investment in Israel.
Intel Corporation (NASDAQ:INTC) is the leading chipmaker and it supplies the PC, mobile, tablets and games console OEMs. Its stock is trading around $25.14 per share and it has a market value of $125.22 billion.
