Intel Corporation Ltd. continued to express its support for the Israeli market, signing a new industrial corporation agreement with the Ministry of Industry, Trade and Labor that commits the world's largest chipmaker to make $810 million in procurements from Israeli companies over the next 10 years.
"Intel is an example of ongoing industrial cooperation, which yields long-term benefits for both parties," said Industrial Cooperation Authority director Bina Bar-On.
She added that the new agreement with the Industrial Cooperation Authority of the Ministry of Industry, Trade and Labor would enhance Intel's investment policy for developing industries and new technologies in Israel.
Similarly, Industrial Cooperation Authority official Zvi Leshem, responsible for reciprocal procurements and industrial cooperation with Intel in Israel, said that the renewed commitment clearly showed that the chipmaker saw great potential in the Israeli market.
The new procurement agreement follows the $540m. Investment Promotion Center's grant to Intel for building its new Fab 28 facility in Kiryat Gat. Intel will invest $4.2 billion to build the plant, in what represents the largest investment ever made by an industrial company in Israel.
In 1996, Intel signed a 10-year cooperation agreement after receiving a $600m. grant from the Israeli government. Under terms of that agreement, the chipmaker was responsible for creating a supplier development program with Israeli industry. As part of the program, Intel examined more than 100 companies and new technologies, and trained more than 40 companies to become authorized Intel providers.
During the past 10 years, the Israeli suppliers' sales to Intel totaled $1.2b., an amount that Bar-On indicated was more than what Intel agreed upon for the supplier development program.
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