Israel’s finance and economy ministries approved a plan by Intel to invest US$6bn into upgrading its chip manufacturing plant, making it the largest single investment made by a foreign company in the country according to Reuters.

The investment plan was submitted in May by Intel. The plant is expected to shift to new 10 nanometer technology. The Israel finance ministry said the plant would be the most advanced chip manufacturing plant in the world.

Intel stated in January it would decide on the location of a 10 nanometer plant this year - Israel was one of a number of countries competing to host the new plant.

The Israeli government said it will give Intel a grant of $300m over five years and will be eligible to pay a corporate tax rate of only 5% for a ten year period. Intel is expected to hire around 1,000 more workers for the chip manufacturing plant by 2023.

Israel’s finance minister Yair Lapid said: "Intel's investment is a strategic asset for Israel's industry. This is the biggest investment by a foreign company ever in Israel and is further proof that Israel is at the forefront of technology and innovation".