Intel Corp to invest in Israel to build new Research and Development sites and also new chip plants

On Sunday, Intel Corp[INTC] announced its decision to invest around $600 million in Israel to expand its research and development. The company also said it was spending $10 billion on a new chip plant. Intel CEO had recently been on a European Tour. The announcement of new investments was made during a one-day visit to Israel by Intel Chief Executive Pat Gelsinger as part of a European tour that included Germany and Belgium last week.  

The CEO said the company was investing $400 million to turn its Mobileye unit headquartered in Jerusalem into an R&D campus for developing self-driving car technologies. The company further would invest $200 million in building an R&D center, called IDC12, in the northern port city of Haifa next to its current development center. The company said its "mega chip design" facility would have a capacity of 6,000 employees.

The CEO, Pat Gelsinger, predicted "a vibrant future for Intel and Israel for decades to come," in a statement issued on Sunday. He was on his first European tour since taking charge of the company in February. Gelsinger, on his visit to Israel, met with Intel and Mobileye management and Israeli Prime Minister Benjamin Netanyahu. Intel would be getting a $1 billion grant from the government to build an $11 billion chip plant. The company said the constructions had also begun for the first phase. Intel is said to be the largest employer of Israel’s high-tech industry with nearly 14,000 workers.