Should Israel Subsidize Intel?

The two sides of the dilemma of whether or not Israel should give Intel 741 million shekels.

November 11, 2010 12:27
4 minute read.
Shlomo Maital

Shlomo Maital. (photo credit: Courtesy)


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“GIVE ME A ONE-HANDED economist!” former US president Harry Truman once demanded. “All my economists say, ‘on the one hand, on the other [hand].’” I’m sorry, Harry, I try my best to write decisively one-handed, as you demand, but some prickly issues are like Chopin’s Minute Waltz – there is no way to do them justice with just one hand.

The recent government decision, in principle, to give Intel 741 million shekels ($205 m.) to subsidize the expansion of its new Fab 28 semiconductor factory in Kiryat Gat is a perfect example. The decision still needs final approval by the Finance Ministry, Knesset committees and by Intel corporation. Fierce debate rages.


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