JERUSALEM (Reuters) – U.S. chipmaker Intel Corp will spend $25 billion on a new factory in Israel, Prime Minister Benjamin Netanyahu said on Sunday, calling it the biggest international investment in the country.

The factory in Kiryat Gat will open in 2027, operate until at least 2035 and employ thousands of people, Israel’s Finance Ministry said, adding that under the deal, Intel will pay a 7.5% tax rate, up from 5 current. %

During its nearly five decades of operations in Israel, Intel has grown to become the country’s largest private employer and exporter and a leader in the local electronics and information industry, according to the company’s website.

In 2017, Intel bought Israel-based Mobileye Global Inc, which develops and implements advanced driver assistance systems, for $15 billion. Intel made Mobileye public last year.

Announcing the deal in televised remarks to his cabinet, Netanyahu called it “a tremendous achievement for the Israeli economy: 90 billion shekels ($25 billion), the largest investment ever made by an international company in Israel.”

There was no immediate comment from Intel in Israel.

(Written by Dan Williams and Ari Rabinovitch; Edited by James Mackenzie)

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