Computing giant Intel Corp plans to invest an additional $600 million in their Israeli operations, Intel CEO Pat Gelsinger announced last week.
Gelsinger made the announcement during a one day visit to Israel as part of a tour of Intel’s European operations which included visits to Germany and Belgium as well.
During the visit, Gelsinger met with Israeli Prime Minister Benjamin Netanyahu, saying that he sees a “vibrant future” for Intel and Israel for decades to come.
This announcement comes on top of Intel’s 2019 commitment to invest $10 Billion in a new chip manufacturing plant in the south Israeli city of Kiryat Gat.
Most of the newly announced investment will be directed towards a new R&D campus in Jerusalem for MobileEye – a self-driving-car technology firm, acquired by Intel in 2017 for just over $15 billion.
Intel will be investing $400 million in the new campus for MobileEye, which the computing giant views as playing a “key part” in the company’s future.
MobileEye is not the latest Israeli tech firm to be acquired by Intel. In 2019, Intel acquired Israeli chip maker Habana Labs for $2 billion, and in 2020, it acquired the smart transportation planner Moovit for $900 million.
The new MobileEye campus will join three additional R&D centers in Israel which Intel operates in the cities of Jerusalem, Haifa and Petah Tikva.
The remaining $200 million is set to be diverted towards another R&D center in Israel, this time in the northern city of Haifa.
The new center, dubbed IDC12, is to be erected alongside its existing Haifa development center, with the company planning to hire 1,000 new employees to develop what they are calling ‘chips of the future”.
Eventually, the company plans to staff the new plant with an additional 6,000 employees.
Intel is the largest private-sector employer in Israel. It started its operations in Israel in 1974, and is a central staple in the country’s booming tech industry. The company currently employs over 14,000 Israeli employees.
“Intel Israel is a microcosm of our global company with investments and innovation across research, development and manufacturing at scale in one location,” Gelsinger said in the statement, adding that he’s been visiting Israel for four decades already, and that it’s “been amazing to see the company grow from just four employees in 1974, to over 14,000 today.