Semiconductor manufacturer Vishay Intertechnology Inc. confirmed Wednesday it was discontinuing a NIS 1.25 billion investment program in Israel, five years after agreeing to the venture. The company reportedly cited the global recession over the last four years, which followed the pre-2000 hi-tech boom, as restricting its future investment criterion. Vishay had signed an agreement with the government in 2000, committing to the investment for the development of its facilities in Beersheba and Dimona. In return, the government pledged to provide a NIS 300 million grant on a performance incentive basis. A spokesman for the Ministry of Industry, Trade, Labor said the government had made good on its payment to date and that the company would not receive the NIS 100m. grant next due to it. Vishay had already paid 39%, or approximately NIS 487m., of the planned investment, and currently has 1,800 employees in Beersheba and Dimona. Vishay was founded in 1962 by Dr. Felix Zandman who currently serves as its CEO and chairman. The company saw a 9% drop in revenues to $1.7b. in the first nine months of 2005, from the parallel period the year earlier. Net income for the nine months $35m., compared to $99m. in the 2004 period. The company plans to release its full year earnings on February 7.