Intel Israel signed a $300 million procurement agreement Sunday with the
Industry, Trade and Labor’s Ministry Industrial Cooperation Authority
.
The five-year supplier development deal, which was signed at a ceremony
at the company’s Kiryat Gat production plant, is the third such agreement
between Intel and the government since 1996.
“Intel is one of the
outstanding companies when it comes to fulfilling reciprocal procurement
obligations, going beyond its own duties in the industrial development program,”
said ICA head Bar-On. “The constant readiness to make further investments in
training of local developers is unequivocal proof of the success of its
investment and reciprocal procurement model in Israel, and constitutes a fine
example for other companies and financial organizations to follow.”
Intel
Israel General Manager Maxine Fassberg called the agreement more proof of the
company’s contribution to “equipment procurement, new technologies and
Israeli-made products developed with the aid of Intel.”
The agreement
follows a recent grant worth $200m., which was awarded by the government, to aid
the expansion of Intel’s Fab-28 Kiryat Gat production plant to make it
compatible for the manufacturing of next-generation 22-nanometer
technology.
In 2010 Intel carried out $264m. in reciprocal procurement of
equipment, services, import replacements and local developer
training.
The company has made an overall contribution to the local
industry worth more than $3.9 billion since 2006, and more than
$5b.
since 1996. It has trained more than 500 Israeli developers in the
field of new technologies in the last 15 years.