Officials from the Industry, Trade and Labor Ministry are concerned that a plan by computer processor manufacturer Intel to invest $5 billion in Israel will be frozen as the company leans toward investing it in Ireland. Intel originally planned to invest the money in January 2012 as part of a plan to upgrade its Kiryat Gat facility to enable it to produce a next generation of chips. But market fluctuations and concerns over a global recession, as well as a more attractive offer by Ireland which has long wanted to replace its now dated facility, have prompted the company to reconsider where it will make the investment. Globes reported on Thursday that Intel requested a $600 million grant from Israel in June to upgrade the Kiryat Gat facility, and that in exchange the company would invest $4.8 billion of its own money in the facility and create 1,300 new jobs. Intel said the upgrade would create the most advanced fabrication laboratory in the world, Globes reported. It was the fourth grant application by Intel since the mid 1990's. A previous grant in 2000 totaled $200 million, according to Globes. The Industry, Trade and Labor Ministry gave the application "the cold shoulder" due to the high frequency of Intel's requests, Globes reported. Israel did recently authorize a NIS 960 million ($258 million) grant for Intel, but stipulated that a new facility should be constructed in Beit Shean so that 500 to 1,000 new jobs could be created in the area. According to the Globes report, Intel surveyed Beit Shean for a possible factory site and is still considering the location. "Currently no new decisions have been made by global Intel. We are evaluating possible options in Israel and the world for our future needs," an Intel spokesperson said. "When we arrive at a decision we will make an announcement ... Intel previously announced two possible locations in the U.S. but potential locations to build a factory in other parts of the world are still being examined."
Intel may shift $5 billion investment from Israel to Ireland
Computer processor giant applies for a $600 million grant to expand its Kiryat Gat facility and said it would invest $4.8 billion in foreign site • Market fluctuations and concern over a global recession, alongside an enticing offer from Ireland, cited.
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