Craig - Re: "Paul, why would a semi manufacturer choose Israel as the place to put a billion dollars worth of delicate machinery? "
Excellent question.
Some background.
One of the early Intel engineers, Dov Frohman Benchkovsky, invented the UV eraseable EPROM in around 1970.
This was an enormous technological achievement - almost the Holy Grail of memory - non-volatile & re-programmable - which Intel parlayed into an enormous marketing success.
Dov Frohman, after several more years, elected to return to academia as a professor at (I'm guessing here) the Technion in Israel. In order to not lose such a valuable technical contributor, Intel chose to "endow" Dov with an Intel design center to be set up in Israel, with Dov closely associated with it - although not technically in charge of it.
This design center was very successful - National and Motorola and many others emulated it.
In the late 1970's the technical talent available in Israel was mushrooming. Further, there was some technical detail that regarded devices manufactured in Israel as of "European" origin, giving such parts a benefit as far as import duties, etc.
With favorable financing, Intel chose to exercise the "3" opportunities - finance, talent & favorable European Import status - and put up a wafer fab in Jerusalem, Israel, which went on stream in 1985. Primarily, it initially was an EPROM fab - due to its "historical" association with Dov Frohman.
The success of this Fab and even more favorable financing - and the need for expansion - led to Fab 18 being chosen for Israel as well.
Bear in mind that not only is Dov Frohman Jewish, but so is Andy Grove and Arthur Rock - Intel's initial - and ONLY - Venture Capitalist and still a board member and large stockholder.
Their affinity for helping establish a viable industry in Israel - to provide employment for the rather heavy concentration of technical talent - all factored in to the decision as well.
All locations have some jeopardy, be it SCUD missiles, IRA attacks, droughts, earthquakes or VOLCANIC ERUPTIONS !
Paul |
