Israel’s National Artificial Intelligence Directorate is in active talks with TSMC, Samsung Electronics, and Intel to build a semiconductor fabrication facility capable of producing chips at 2 nanometers or smaller.
Erez Askal, the directorate’s leader, has called the failure to secure a fab a “very big failure.”
The five-year sprint
Israel’s plan includes developing a data center cluster capable of supporting 100,000 GPUs within five years, which would place the country on par with the largest planned AI gigafactories in the European Union.
A $300 million AI data center already opened in Modi’in in October 2025, equipped with 4,000 Nvidia GPUs. About 25% of that facility’s capacity has been earmarked for a national supercomputer under the Israel Innovation Authority.
