Monday, September 22, 2014
Intel Bets On Israel - Invests $6B To Upgrade Facilities
Intel, the leading chip, microprocessor and computer hardware manufacturer has decided to spend $6 billion to upgrade its Kiryat Gat chip manufacturing plant, in one of the biggest single investments ever by a foreign company in Israel. The deal is expected to generate thousands of jobs.
Intel will get a grant from the Israeli government of $300 million over a five year period, and be eligible for a significant reduction in corporate tax rates over a ten year period. Intel will also guarantee to hire at least 1,000 workers, and to spend hundreds of millions of shekels on products and services in Israel. In addition, under the agreement Israeli contractors and workers will get priority on the upgrade work.
This is nothing new for Intel, which is by far the largest international firm operating in Israel and knows a win-win when it sees one. Over the past 40 years, the company has invested over $10 billion in in Israel, and employs some 10,000 people directly, as well as indirectly employing about 30,000 Israelis whom work for subcontractors and other Israeli companies that do business with Intel.
This comes on the heel of other good news. Standard and Poors, the international ratings agency reaffirmed its high 'A+/A-1' rating for Israel's bonds and sovereign debt, making it a better bet for investment than many EU countries.
S&P's forecast for Israel? :
"In our view, the recent Gaza conflict will lead to only a modest weakening of Israel's fiscal trajectory,” the agency wrote in its report. “Although Israel may temporarily reverse its fiscal consolidation, we expect its gross general government debt ratio to remain largely flat in the next three years.”
"Although the recent fighting in Gaza is a reminder of the long-term threat posed by geopolitical risks, we consider that in the short term, the effect will only be to accentuate the economic slowdown and modestly weaken the fiscal account,” the report continued. “The fighting has not changed our view of Israel's core credit strengths, such as its prosperous and diverse economy, the contribution of natural gas production to a healthy external balance, and its relatively flexible monetary framework,” it added.
The BDS freaks that demand their institutions and pension funds divest from the booming Israeli economy are not only revealing their inherent anti-semitism - they're cutting off their noses to spite their faces.