Intel to Expand its Manufacturing Base in Israel

[btarunr]

The Israeli Government revealed that chipmaker Intel plans to expand its presence in the country for manufacturing and R&D. The company is reportedly preparing an ILS 18 billion (around USD $5 billion) investment toward expanding its Kiryat Gat manufacturing facility in southern Israel. The expansion will also include an ILS 3 billion expenditure by Intel on local suppliers. In return, Israel is giving Intel tax-breaks running up to 2027, where the company will be taxed at a reduced rate of 5 percent. The Government is also considering an ILS 700 million grant to the company. Intel is one of the largest employers and manufacturers in Israel. The company exported $3.5 billion worth goods and services from the country in 2017.



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[btarunr]

Anti-sem/IL comments = insta-ban.

 

[dj-electric]

Anti-sem/IL comments = insta-ban.

Thanks.

On topic - this is exactly what should boost 10nm production and get us to Intel's destination hopefully by the end of 2019.

 

[cuneytcam]

Intel finally expanded its base since everybody else already expanded a lot of bases in there.

 

[coonbro]

Israel - what are they like now 3ed or 4th in the world leading in tech and health now . they attract a lot of these companies to invest in them

for being in a desert there I think 4th in the world for exporting flora [ flowers, plants you get at a garden center ..ect.... ]

 

[dj-electric]

Israel - what are they like now 3ed or 4th in the world leading in tech and health now . they attract a lot of these companies to invest in them

for being in a desert there I think 4th in the world for exporting flora [ flowers, plants you get at a garden center ..ect.... ]

There's a long history of Israel and intel. Goes way back to the 70s really. Teams from there, USA and India work in close co-operation to develop platforms and architectures.

 

[yotano211]

Wow thats alot of tax breaks from Israel. Every study I read on companies that get these huge tax breaks from states or countries always say that is doesnt pay back.

 

[Xaled]

Yeah they better spend money on this instead of on fake israeli-based security companies..

 

[the54thvoid]

Gotta love them tax breaks. And that large grant. It's almost like a subsidy, you know the ones lots of people hate.

 

[coonbro]

Wow thats alot of tax breaks from Israel. Every study I read on companies that get these huge tax breaks from states or countries always say that is doesnt pay back.

the company gets the breaks in agreement they hire X amount of local people [ that only lasts so long and layoffs show up down the road quick ] that in turn get a pay check that taxes are withheld and spend tther checks locally in sales tax that in turn off sets the tax brakes fro the company -. then the inflation that come in with a company as that in a area .

in the end its the poor working slobs that foot the bill's and also I feel why internet sales tax is going to be a thing everywhere soon cause its now that they see local sales tax is hurting more then ever now [opinion]

seems one of the end of times prophecy's is like [best guess at it ] '' I will return my people to this land and they will make the desert bloom and blossom '' well 70 years ago they were able to return and there making that desert bloom and blossom .. just 70 years and a world leader in a lot of areas .

the company gets the breaks in agreement they hire X amount of local people [ that only lasts so long and layoffs show up down the road quick ] that in turn get a pay check that taxes are withheld and spend ther checks locally in sales tax that in turn off sets the tax brakes fro the company -. then the inflation that comes in with a company as that in a area . you see reports on how amazons new HQ will affect the communities that wins it ..

in the end its the poor working slobs that foot the bill's and also I feel why internet sales tax is going to be a thing everywhere soon cause its now that they see local sales tax is hurting more then ever now [opinion]

seems one of the end of times prophecy's is like [best guess at it ] '' I will return my people to this land and they will make the desert bloom and blossom '' well 70 years ago they were able to return and there making that desert bloom and blossom .. just 70 years and a world leader in a lot of areas .

 

[Joss]

This investment, and previous ones, has nothing to do with sound business practice; it's just another example of the highly disproportional influence Israel holds on the U.S.
Just another reason to buy AMD.

 

[Valantar]

I'm truly sick of these gargantuan donations (yes, donations - this is not "not taking", it is giving away) of tax money to enormously profitable companies for the "privilege" of having them place enormous strains on the infrastructure of whatever place they're settling. The argument for "creating jobs" and thus generating tax revenue has been proven false a thousand times (just look at all the utterly broke municipalities in and around Silicon Valley!), yet it's becoming more and more of a requirement to get companies to settle. The Amazon "courtship" process last year was a sickening display of desperation and corporate greed. This needs to end. The cycle of neoliberalist politicians deconstructing the public sector step by step while giving away public money to private profits and screwing over the working poor and middle class is disgusting.

Intel made $4.5 BILLION (net profits, after taxes) in the last quarter alone, and paid a grand total of 11% in taxes. They do not in any way need tax breaks or subsidies. All of this, of course, is while their total stress on public infrastructure far outweighs the sum of that of their employees. But as we all know, water, sewage, roads and all that other stuff is provided by magic spells and wishing upon a star. Investors and stock holders of course have far more use for that money than the general public. How else are they going to afford their private jets?

 

[coonbro]

then the poor guy working overtime everyday at pizza hut so he can go buy that hot new i7 .@ 350 bucks

I then got to wonder how many Israelis get most of them jobs or is it the migrant workers [ Palestinians , or from any Arab area around Israel , ect... ] you see this just here in the USA . CBS did a report on that visa abuse thing not long ago importing workers from where ever to do the unemployed skilled tradesman jobs for like 25 cent on the dollar .

 

[Easo]

Good for them.
A small country actually can, as they show.

 

[Valantar]

Good for them.
A small country actually can, as they show.

Can... pay hundreds of millions to highly profitable companies? Small countries are quite good at that, actually. Switzerland stands out, but Lichtenstein, Andorra, and various Caribbean states are noteworthy too. Oh, and Ireland. Can't forget them.

 

[Flanker]

Are locals actually happy about this? Sticking a plant that makes tons of highly toxic waste, uses tons of power and electricity near my living place would get on my nerves.

 

[Aquinus]

I wouldn't be surprised if it came down to logistics as well as tax breaks. It's also not unrealistic for the skilled labor to be there either. Supplies need to be brought in and the finished product needs to be shipped out. Depending where the highest demand is and where the supply for materials are, it could be the case that Israel is a good choice to minimize logistical costs.

 

[Jism]

Israel has some very talented people.

 

[bug]

Wow thats alot of tax breaks from Israel. Every study I read on companies that get these huge tax breaks from states or countries always say that is doesnt pay back.

How do you figure? Investments create jobs. Employed people pay taxes. Company pays taxes at a discount.
How doesn't this "pay back" exactly? Does having no jobs, no people and company to pay taxes yield more $$$?

 

[Caring1]

Funny how my comment got removed, yet the original comment I referred to remains. Biased much?

 

[bug]

Funny how my comment got removed, yet the original comment I referred to remains. Biased much?

I think it's called moderation.

 

[Caring1]

I think it's called moderation.

If both comments are irrelevant to the article, why remove only one?

 

[bug]

If both comments are irrelevant to the article, why remove only one?

Apparently only yours was? (Idk, I didn't read any of them)

 

[yotano211]

How do you figure? Investments create jobs. Employed people pay taxes. Company pays taxes at a discount.
How doesn't this "pay back" exactly? Does having no jobs, no people and company to pay taxes yield more $$$?

I only said that all of these studies done on company tax breaks dont pay back in the end. And intel getting billions in tax breaks when they have so much cash is another prime example of those studies.

 

[Valantar]

How do you figure? Investments create jobs. Employed people pay taxes. Company pays taxes at a discount.
How doesn't this "pay back" exactly? Does having no jobs, no people and company to pay taxes yield more $$$?

That's a very naive stance. Factories need a lot of resources. Electricity might require new power plants or hundreds of miles of reinforced power grid. Chemicals, other materials need transportation in massive, heavy trucks or by rail. Factories produce waste - massive amounts, usually, and usually waste that's difficult to process safely and cleanly. Waste processing plants might need to be built. Workers need to be able to get to and from work. All of this requires serious public spending on infrastructure, transportation, re-zoning, urban planning, and administration – which the income taxes of even a few thousand employees won't come close to covering. And don't think for a second that Intel will pay a cent for any of this - the public paying for this stuff is a prerequisite even before the tax deals. Then there's the $200 million "grant" (read: bribe), which, again, is paid for by taxpayers.

As I said above, look at all the broke municipalities in Silicon Valley. Google it, it isn't hard to find hard data on this. Corporate tax breaks kill local governments, and hurt the population in very tangible ways, all to line the pockets of millionaire and billionaire investors and investment companies.

Corporations are generally FAR more profitable than the cumulative taxable income of their employees (heck, hiding profits from taxation is a huge part of corporate management) Corporate tax is thus both fair in and of itself, and a requirement to make up for the massive strain corporate activity puts on public utilities and infrastructure.