Israeli Prime Minister Ariel Sharon told cabinet ministers on Sunday that he had been informed by Intel Corp's head that the US electronic chip giant plans to build another plant in Israel.
"I spoke yesterday with the head of Intel, Craig Barrett, who informed me the company had decided to build another plant in Kiryat Gat (in southern Israel) in an investment of about $4 billion," Sharon was quoted as telling the cabinet meeting in a statement issued by his office. A spokesman for Intel in Israel declined to comment.
The Prime Minister's Office, together with the Industry and Trade Ministry and the Finance Ministry, have put together a framework for government aid to Intel to set up the plant, the Industry and Trade Ministry said in a separate statement.
The ministry said its Investment Centre would give a grant of 15 percent of the investment up to $3.5 billion, for a total of $525 million.
Finance Minister Benjamin Netanyahu said in a statement that the government in 2001 had originally agreed to give a grant to Intel of 12.5 percent of the investment but recently Intel had asked the state to raise its grant to 20 percent.
The compromise of 15 percent is worth an additional $90 million. The grant is subject to a professional survey, Netanyahu said.