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The U.S. chip-maker Intel Corp. will invest $2.7 billion to upgrade its plant in southern Israel.
The Kiryat Gat plant will start producing the next generation of 22-nanometer chips in December, Intel announced at a news conference Tuesday.
The investment in upgrading the plant includes a $210 million grant from the Israeli government.
Intel also will be hiring 1,000 new workers for the new production line. It will be the second plant in the world to manufacture the new chips.
The company already employs more than 7,000 people in Israel, according to reports.