ISRAEL 
HIGH-TECH & INVESTMENT REPORT

from the December 1999 issue


Intel's Kosher Chips


Israel's modern high-tech enterprises have to contend with rabbinical customs. One of these is that enterprises, including industrial companies require a special permit to operate on the Jewish Sabbath, a day of rest.

Recently Intel rolled out its 15 new Pentium III processors built on 0.18-micron processing technology. The Intel Israeli group had cause for celebration as the new chips were developed at Intel's Haifa Development Center and high volume production began at its sparkling new facility at its gateway to the Negev desert facility at Kiryat Gat. The plant was built at a total cost of $1.6 bln with the Israeli government providing $600 mln of the total cost. When full time production is reached in mid-2000 its daily output will consist of thousands of processors and its production will come to $3.0 mln a day or about a billion dollars a year. The Jewish calendar beside the 50 Sabbaths each year and numerous other holidays reduces the available time for annual production by some 75 days. Explaining the discrepancy in the time available and the total expected annual rate of production Kiryat Gat Manager Alex Kornhauser said that at the time when Intel signed Government of Israel agreements related to the Law of Capital Investment it also received Rabbinical approval for operating the Intel plant on the Sabbath -- making Intel's chips truly kosher.


Reprinted from the Israel High-Tech & Investment Report December 1999

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