Computer chip giant
(Nasdaq:INTC) Israel on Wednesday submitted a plan to the government's Investment Promotion Center requesting a subsidy for the construction of a new $4 billion microchip manufacturing plant.
The company had until May 5, 2001 to file its request. At present, no decision has been made to proceed with the new Israeli facility. An Israeli Industry and Trade Ministry spokesman said the Investment Center will need several months to review the request.
In February of this year, former Israeli Finance Minister Abraham Shohat signed a letter in principle saying the government was willing to subsidize 12.5% of the new investment for a total of $440 million. Intel reportedly asked for that subsidy to be increased.
Intel has already invested $2.7 billion in Israel, and received $800 million in government grants since 1974, when it began operating in the country. Its largest local factory is located in the town of Kiryat Gat, which is the site planned for the new facility as well. Intel exported goods worth $2 billion from Israel during 2000.