Chip giant Intel is leaning on the Israeli government to get incentives to expand its plant in the southern Israeli city of Kiryat Gat.
Apparently what Intel has in mind are financial initiatives from the Israeli government amounting to $400 million of its $2.7 billion price tag
Intel is chatting with the Ministry of Industry, Trade and Labour over a new plant and it is saying it will provide the country with 400 jobs.
The Ministry has put on its best beard and is trying to haggle hard. It has apparently offered between $200-250 million and a nice gourd.
Intel said that the Ministry shouldn’t mind the quality, but it should look at the width of the new plant.
Local hacks claim that a two-for-one-deal might be in the offing. It is rumoured that Intel is planning another plant, next to the plant it currently wants to build, which is next to the one it has already built.
While Intel likes this idea, local hacks say, the worry is that with two for one deals you always end up tempted into to buying more of something than you want.
Moshe Justman, Dean of the Faculty of Humanities and Social Sciences at Ben-Gurion University, and an expert on the economics of innovation, told The Media Line that Intel has a bargaining position in deciding where its plants will be, and Intel expects certain concessions or support from the government.