Intel announced this week that it would increase its investment in its Kiryat Gat facility, known as Fab 28, by $6 billion.

David Shamah, technology reporter for the Times of Israel, writes that the expanded facility will produce 10-nanometer chips, which are used in “wearable technology and perceptual computing devices.” Intel was reportedly deciding between locating the plant in Israel or Ireland. A significant Israeli investment of approximately $220 million apparently enticed the giant chip maker to choose Israel for the site of the new production facility, which is estimated to create thousands of jobs.

In a statement Wednesday, Finance Minister Yair Lapid congratulated Intel for its decision. “I see this investment as an expression of faith in Israel’s economy. These investments will create thousands of jobs directly for Intel, and tens of thousands of jobs in the rest of the economy.”

Lapid added that Israel “will continue to help advance tech investments in Israel.”

Mooly Eden, Intel’s general manager in Israel, estimates that Intel is responsible “for some 30,000 jobs in the Israeli economy” and that in 2013, “Intel Israel was responsible for more than 9% of Israel’s tech exports.”

The Intel announcement is the latest instance of a corporate giant boosting its presence in Israel. In February, IBM and Cisco announced plans to invest in Israel’s new cyber-security technology park in Beersheba, which defense contractor Lockheed Martin also announced it will open an office.

Overall, Israel’s tech sector has been performing impressively, with Israeli startups attracting attention from the likes of Google and Facebook. Israel’s success has been attributed to its ability to develop human capital.

[Photo: המסלול האקדמי המכללה למינהל / YouTube ]