Israel’s Finance Ministry has given the Intel Corporation final approval for its plan to build a $1.6 billion semiconductor plant in Israel.
The ministry announced the decision after the two sides resolved months of wrangling over the amount Israel would contribute to the plant’s construction costs.
The two sides agreed that Israel would provide what it originally pledged, 38 percent of building costs, or $608 million.
In turn, Intel pledged to buy Israeli goods and services for its local and international branches.
The plant, to be located in Kiryat Gat, located east of Ashkelon, will make computer memory chips.
Finance Minister Avraham Shochat said Intel is expected to provide employment for 2,500 people when the plant is running at full capacity.
Intel is the world’s largest producer of microprocessors, holding 75 percent of the market.