Israel gives Intel another big cheque

Hagglers from Chipzilla have managed to convince the Israeli government to invest $295 million in two local chip plants.

A statement from the Israeli Industry and Trade and Finance Ministries said that  Intel plans to invest a billion dollars in the two projects.

The grant was conditional on Intel hiring 1,500 people for its Kiryat Gat plant in southern Israel and 600-1,000 more in a new assembly plant in the north.

Intel will also get various tax benefits, a beard for the wife and a nice gourd with “present from Jerusalam” on it worth at least 10 shekels.

All this will help Intel carry out its technology upgrade to produce wafers with 15 nanometre technology at its Fab 28 chip plant in Kiryat Gat.

Last month, the trade ministry said Intel had asked Israel for an unspecified grant, which Israeli media thought was about $500 million to $960 million.

Israel in January approved a $200 million-plus grant for Intel to upgrade to 22 nanometre processing technology.