Jerusalem - AFP
Israel has approved a one billion shekel ($295 million, 204 million euro) grant to Intel to help underwrite an expansion in its local operations, the finance and trade ministers said on Wednesday. The ministers \"decided to approve in principle giving a grant to Intel of about one billion shekels toward the investment in two of the company\'s plants in Israel,\" a joint statement said. The grant would cover around 20 percent of the total price tag for the plan to double the size of Intel\'s existing chip plant in the southern town of Kiryat Gat and open a new factory in the north of the country. The company would also enjoy tax breaks. Receipt of the full grant would be conditional on Intel hiring an additional 1,500 workers in Kiryat Gat and 600-1,000 employees in the northern facility. Funding will be spread over a 10-year period from 2014, and the exact amount will be contingent on the number of new workers hired. Intel opened its doors in Israel in 1974. Its Web site describes it as the country\'s largest private-sector employer, with 6,600 workers.