Israel Lobbies TSMC and Samsung for Multi-Billion Dollar Chip 'Fab' Hub

Israel's national AI czar, Erez Askal, has launched a formal lobbying effort to convince semiconductor giants TSMC, Samsung, and Intel to build a state-of-the-art manufacturing hub within the country. Askal is proposing the construction of a fabrication plant capable of producing 2-nanometer chips, alongside new specialized data centers. The move is part of Israel's strategic push to secure its technological sovereignty amid a global race for AI hardware.

The lobbying comes at a time when chipmakers are already stretched thin by commitments in the U.S. and Europe. However, Israel’s established ecosystem of chip design and high-tech talent could prove an attractive incentive. The proposal also includes significant government support for sovereign AI development, aiming to ensure that the nation remains a top-tier player in autonomous systems and robotics.

Securing a 2-nanometer fab would put Israel in an elite group of countries capable of domestic cutting-edge manufacturing. While Intel already has a significant presence in the country, the addition of TSMC or Samsung would represent a major shift in the geopolitical semiconductor map. Askal’s initiative reflects a global trend where nation-states are no longer content with just designing AI, but are seeking the physical infrastructure to build it.