Intel Corp. has agreed in principle to build a $25 billion manufacturing plant in Israel in what Prime Minister Benjamin Netanyahu hailed as the largest ever foreign investment in the country.

The preliminary deal was announced by Israel’s finance ministry on Sunday. Intel Israel confirmed the company’s “intention to expand manufacturing capacity in Israel,” but didn’t specify the terms in its statement or provide other details.

According to Israel, the project will add thousands of jobs to the existing 12,000 workers employed by Intel in the country. The new plant — in Kiryat Gat, south of Tel Aviv — is slated to begin operations by 2027 and remain active until at least 2035, the ministry said. As part of the agreement, Intel will pay a 7.5% tax rate in Israel instead of the 5% it pays now, but may also become eligible for a significant government grant representing 12.8% of the total investment.

“Intel’s decision to invest in Israel is an expression of confidence in the Israeli economy at a time of global uncertainty,” Finance Minister Bezalel Smotrich said in the statement. “The unprecedentedly large investment will affect the growth of the Israeli economy in the coming years and advance quality employment.”

Santa Clara, California-based Intel, which has been operating in Israel since 1974, said its intention to expand “is driven by our commitment to meeting future manufacturing needs and supporting Intel’s IDM 2.0 strategy, and we appreciate the continued support of the Israeli government.”