Intel to take over bankrupt Micron plant in Israel

Intel will take over a plant in Israel's Kiryat Gat city after it was shut down by the US microchip manufacturer Micron in a bid to save 800 jobs, it was announced 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, Xinhua reported.

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) benefits package that the Israeli government will provide Intel in exchange of expending the operations of the US semiconductor giant in Israel.