Intel, the largest employer in Israel’s hi-tech industry, published its corporate responsibility report for 2021-2022 last week, stating an all-time high in the company’s contribution to the Israeli economy.
The report further shows that Intel’s procurement from Israeli vendors in 2021 grew by over 25% compared with the previous year, rising from $1.7 billion to $2.2 b.
Intel attributes this growth to the construction of the company’s new chip factory, which is underway in Kiryat Gat.
The rising demand for chips and the crisis in the global chip industry also led to a new record in export volume as well as the company’s share of Israel’s GDP, reflecting a year-over-year increase of $100 million to $8.1b. in 2021.
These export figures account for 1.7% of Israel’s GDP and 11% of the total exports of the Israeli hi-tech industry. Some 70% of Israeli hi-tech exports are chips from the company’s production facilities and 30% from its development centers.
Intel investments
Since establishing operations in Israel, Intel has invested $48b. in the country, of which $22b. was invested by acquiring Israeli companies.
Intel’s Israeli payroll includes 12,000 people plus more than 2,000 in Mobileye. In addition, the computer chip giant announced plans to acquire Tower Semiconductors from Migdal Haemek in the last year, including its 1,500 employees.
In terms of indirect employment, Intel is currently responsible for creating 48,000 jobs in Israel.