Israel Seeks Semiconductor Hub Status Through Lobbying of Intel and TSMC

Israel's "AI Czar," Erez Askal, is leading a diplomatic and economic push to transform the country into a global hub for semiconductor manufacturing. Askal is currently lobbying leading manufacturers including Taiwan Semiconductor Manufacturing Co. (TSMC), Samsung Electronics, and Intel to build a state-of-the-art semiconductor "fab" in Israel. The goal is to produce chips utilizing the latest two-nanometer process or smaller.

The push for a domestic chip manufacturing presence comes as the global race for AI sovereignty accelerates. By securing local production of the world’s most advanced chips, Israel aims to ensure its tech sector—historically a major driver of the national economy—remains at the cutting edge of the AI transition.

This move matches similar efforts in the U.S. and Europe to "near-shore" chip production and reduce dependence on a few concentrated supply chains in East Asia. If successful, the addition of a new high-end manufacturing facility would solidify Israel's position as a critical node in the global AI hardware ecosystem, even as geopolitical tensions continue to affect regional trade.