According to Israel21c, this will bring the total scope of Intel investments in Israel to over $6 billion since 2006. The Kiryat Gat facility is likely to be one of the first Intel 10nm fabs.

Israeli Ministry of Economy official Ziva Eger said the investment will help create thousands of jobs and reinforce the country’s standing as a world leader in technology.

“The agreement signed today between the Industrial Cooperation Authority and Intel is another expression of Intel’s contribution by way of its purchase of equipment, new technologies and Israeli products developed together with Intel,” said CEO of Intel Israel Maxine Fassberg.

Fab 28 currently churns out 22nm silicon for Intel. The fab was passed over for the 14nm upgrade. A source familiar with the matter told us that Israel competes with Ireland for every node upgrade.

“We lost 14nm to Ireland and won 10nm,” the source said.

Israel is currently in a better position to offer incentives and subsidies for such investments, as Ireland’s ‘business-friendly’ tax policies are being scrutinised by the European Union.

Intel is expected to launch the first 10nm CPU in 2016, followed by 7nm parts a couple of years later.