The plant would employ 2,500 workers and make 0.13 micron semiconductors, said Uri Stein, the ministry's spokesman. The company has discussed the plant with ministry officials, though the company hasn't decided exactly where it will be located.
"We know of Intel's intention to build a new plant," Stein said. "They will present a plan, and we will try to assist them."
Intel is also in talks with the ministry about government aid for a US$1 billion expansion of its chip plant in Kiryat Gat, a town in southern Israel where the government provides incentives to investors, Stein said. Intel, which has operated in Israel since 1974, has another facility in Jerusalem and has invested in Israeli companies including DSP Communications.
Intel officials in Israel weren't available to comment. Intel's plans were reported earlier by Israel Radio.
Santa Clara, Calif.-based Intel's US$1.6 billion Kiryat Gat plant was built with the help of a US$608 million grant from the Israeli government. Intel's investment in the plant was the largest by a private concern in Israel at the time it was approved in 1996.
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