Last updated September 30th 2014

Intel recently got the go-ahead from Israel’s Finance and Economy Ministries to invest $6 billion in the remodeling of its chip manufacturing plant in Kiryat Gat. The leading PC chipmaker will receive a grant of $300 million and tax concessions in return.

Although the high-tech company has not released a press statement regarding the deal, numerous reports suggest the large investment will be used to upgrade the Intel plant to be among the most advanced chip manufacturing facilities in the world.

The company is expected to produce advanced 10 nanometer chips in Kiryat Gat. The chips are being hailed to power wearable technology and perceptual computing devices.

According to reports, Intel will receive a grant of $300 million over five years from the Israeli government and will be eligible to pay a low corporate tax rate of only 5 percent for a 10-year period.

Finance Minister Yair Lapid said the deal “provides additional proof of Israel’s capabilities in high-tech and innovation” and that “Intel’s investment is a strategic asset for Israel.”