Intel CEO Paul Otellini is making a brief visit to Israel today, lasting a few hours, ahead of expected changes in Intel Israel. He met Prime Minister Ehud Olmert as well as company employees. The visit is part of planned trip to the region.
Two weeks ago, Intel Corp. (Nasdaq:INTC) announced that it was transferring its Fab 18, which makes flash processors, in Kiryat Gat to a new joint venture with STMicroelectronics NV (NYSE:STM). Fab 18 has 1,500 employees, and is the main activity that Intel is transferring to STMicroelectronics. Intel is now building its new Fab 28 in Kiryat Gat.
Early this year, Otellini announced that the company would close its production line, which has 300 employees, in Jerusalem by the end of 2007. However, the company recently reached an agreement to continue the fab’s activity, but in new fields.
Intel Israel said that Otellini answered questions posed by employees in Kiryat Gat, which were apparently related to the changes in activity. He told Olmert, “Throughout the years, Intel Israel has been essential for Intel’s success.”
Published by Globes [online], Israel business news - www.globes.co.il - on June 7, 2007
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