Intel announced a $5 billion investment to significantly expand the company’s factory in Kiryat Gat, the economy ministry announced Tuesday. In a statement, the ministry said the computing giant would receive a half-billion dollar grant in return for the investment, the largest grant Israel has ever given to a corporation.

As part of the deal, Intel will hire 250 additional Israeli employees, as well as purchase roughly NIS 3 billion worth of materials from Israeli vendors.

“This is tremendous news for the economy, which expresses confidence in Israel, and positions us as a leading global economy,” Finance Minister Moshe Kahlon said of the deal, adding that “there was competition with several countries for Intel’s investment, and for the past two years, I have worked with the vice president of Intel International in order to bring the investment to Israel, until the announcement today. In a week of Israeli successes, we are once again on the map, this time, of the global economy.”

Director General of the Ministry of Finance, Shai Babad added, “the Finance Ministry aplaudes Intel International’s decision to make another substantial investment in Israel. The investment, which will take place over the next two years, will give the hi-tech sector in the periphery a shot in the arm and will spur employment in an exceptional manner.

“The Ministry of Finance has set a goal of bringing foreign investments to Israel, and is successfully carrying that out,” Babad said.