Intel will take over a plant in Kiryat Gat in southern Israel which was shut down by the U.S. microchip manufacturer Micron, saving 800 jobs, the company announced on Sunday.
Intel and Micron signed a deal according to which Intel would continue to manufacture the same flash memories which are currently manufactured at the plant, and will sell them to Micron. Intel would also continue to employ 800 of about 1,000 workers who currently work at the factory, Intel said in a statement.
The deal is expected to be concluded in the next three months. The move is part of a one-billion-shekel (about 280 million U.S. dollars) benefits package that the Israeli government will provide Intel in exchange of expending the operations of the U.S. semiconductor giant in Israel.
