Intel Corporation (NASDAQ:INTC) officially submitted plans on Sunday to invest 20 billion shekels ($5.8 million) in a chip plant located at Israel. This new state-of-the-art chip plant in Israel may have been chosen by the company for the manufacturing of its key next-generation processors. The company has a strong production base at Ireland, which was thought of as the production base for the new chips. The company’s Israeli manufacturing facility will go under an up gradation, but the company has not yet disclosed the scale of up gradation.

On Sunday, Intel executive and government officials held a meeting at the Economy Ministry’s Investment Center offices, where the company formally submitted a request for the government grant. The formal application from Intel comes days after the company announced its intention of the investment.

Israel Plant – continuing operations till 2030

Last week, Naftali Bennett, the economic minister of Israel, has reported to Israeli media that close to $6 billion will be spend by the company for this up gradation.

“We competed with the whole world and Intel chose us,” said Bennett. “In the next few days, Intel will submit a business plan for immediate and direct investments of $6 billion.”

The chip maker has committed itself to continuing its operations in Israel up till 2030. The company has even assured this to the Israeli government as informed by the government minister. The minister, also, informed that after this investment by Intel Corporation (NASDAQ:INTC)at its Israel facility, there will be a large number of jobs created ranging from 800-1000 while the unit already employs 9000 workers.

Intel may target new 10-nanometre technology

Intel Corporation (NASDAQ:INTC)  has been involved in the process of upgrading the Irish plant from past 3 years and has already spent $5 billion in the three years’ time, as informed by the company though they haven’t revealed what will be manufactured in that updated plant.

Intel’s core product, in the immediate future, will be the new 10-nanometre technology. After the company has announced its intentions of making the investment at Irish plant, speculations are that the new chip with the 10-nanometre technology will be manufactured at the Israel facility. This win to the Israel facility has come over Ireland and US, who were also the competitors in the race of winning the new investment from Intel.

It was announced by Intel Corporation (NASDAQ:INTC), late last year, that they will be designing a new line of processors for small devices at its Leixlip facility. Almost 5000 construction workers are employed at this facility.