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By Tova Cohen
PETAH TIKVA, Israel(Reuters) - Intel Corp <INTC.O> is investing heavily in "smart buildings" in Israel that will be full of perks to keep employees happy, helping the U.S. chipmaker compete for the country's top professionals.
Intel, one of the biggest employers and exporters in Israel, plans to invest $11 billion to build a manufacturing facility in the country, where some of its most advanced technologies have been hatched.
Home to more startups per capita than any other nation thanks to its advanced military and government support, Israel is suffering from a shortage of talent.
While multinationals like Intel, Apple and Google have snapped up local startups and set up research centers, competition is making it tough to find skilled workers.
Tech companies in Israel were unable to fill about 17,000 positions in 2018, according to Start-Up National Central, a nonprofit research organization, and that figure continues to climb.
To address this gap and lure talent, Intel has upped the ante at its new development center in the Tel Aviv suburb of Petah Tikva. Replete with environmentally friendly systems, a smart gym, massage parlor, the structure also has 14,000 sensors that monitor motion, light and air to make sure workers are comfortable.
If these efforts give Intel an edge in hiring, rival companies are expected to follow suit.
"Anything you offer as a perk, whether it's a gym membership or a paperless work environment or additional days for maternity leave or a go-green policy, all of these things are going to help you," said David Gantshar, chief executive of California-based Shepherd Search Group.
Intel's box-shaped, 10-story building is covered in glass and will accommodate up to 2,700 of its local 13,000 workforce.
The company declined to comment on how much it spent on the development center. Israeli media reported a cost of 650 million shekels ($188 million).
David Hareli, deputy CEO of Afcon Holdings <AFHL.TA>, which constructed the building, said it was a challenge to finish the project within Intel's three-year timetable.
Originally designed to be seven stories high, Intel asked to add three floors. Once the contract was signed, Intel asked for LEED Platinum certification, the highest standard of green construction, rather than the lesser gold level.
This required a double-skin facade to improve ventilation and prevent the building from heating up under the strong Middle Eastern sun.
Architect Dagan Mochli, who designed the building, said he was working on a new development center for Intel in the northern city of Haifa that will also be smart and LEED Platinum.