On Monday, Israel’s Finance and Economy Ministries gave final approval to a plan presented by Intel Corp to invest $6 billion in the remodeling and continued growth of its chip manufacturing plant in Kiryat Gat. The investment will become the single largest investment made by a foreign company in Israel to date.

“Intel’s investment is a strategic asset for Israel’s industry,” said Finance Minister Yair Lapid. “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.”

Intel plans to upgrade their Kiryat Gat plant, with a total investment of roughly $6 billion (about NIS 22 billion). The exact amount is still pending upon final approval by Intel’s Investments Center.

According to a statement made by the Finance and Economy Ministries, Intel will receive in return a government grant of $300 million over five years and will be eligible to pay a low corporate tax rate of only 5 percent for a 10-year period.

An extra 1,000 jobs will be created by the implementation of the proposal, with an additional 2,500 jobs created during the upgrade. In addition, the company will be obligated to adhere to paying up to $500 million dollars in local purchases, and another NIS 180 million ($49 million) annually.  Reuters reported that the company expects most of its employees to be from the south.

The finance ministry said that after the upgrade, the plant would qualify as the most advanced chip manufacturing facility in the world.

Intel, which submitted the investment plan in May, is widely believed to be shifting to new 10 nanometer technology. Earlier in the year, Intel had said that it would decide on the location of a new 10 nanometer plant this year. Israel was one of a number of countries competing to host the new plant. It is as of yet unconfirmed that this new plant upgrade will indeed be the 10 nanometer chip plant that Intel was referring to in January.

Over the past 40 years, Intel Israel has invested $10.8 billion in plants and development centers throughout the country and receives $1.5 Billion in grant money. Intel Israel’s exports totalled $35 billion over a 40-year period.

In 2013 the company reported a loss, exporting only $3.8 billion, down from the $4.6 billion in 2012.