IDA Ireland has lauded the recent Intel expansion as one of its biggest ever coups. But in Israel, they take a tougher approach to such matters. The Israeli government, which offered Intel Corp a 38 per cent subsidy to build a $1.6 billion (about £1 billion) chip manufacturing plant, has begun to have second thoughts.

Government sources were quoted this week saying that a study by the Industry and Trade Ministry's Investment Centre showed that Israel could lose a lot more than it would gain. It has asked Intel to consider buying more local products and paying more tax. Intel, not surprisingly, is resisting. And to think that European, countries are hitting each other over the head to give the big chip companies money to build plants.