Chipzilla's factory in Kiryat Gat is due to open in 2027, to operate through 2035 at least and to employ thousands of people, Israel's Finance Ministry said. Under the deal Intel will pay a 7.5 per cent tax rate, up from the current five per cent, the ministry added.

During its almost five decades of operations in Israel, Intel has grown to become the country's largest privately held employer and exporter and a leader of the local electronics and information industry, according to the company's website. In 2017,

Intel bought Israel-based Mobileye, which develops and deploys advanced driver-assistance systems, for $15 billion. Intel took Mobileye public last year.