The Canadian–Israeli investment fund Awz has announced plans to establish a specialized chip manufacturing facility in Ashkelon, backed by an initial investment of approximately 5 billion shekels (around USD 1.6 billion). The plant will be built on a plot of roughly 70,000 m² in the Tera Park industrial zone and is intended to strengthen Israel’s national capacity in advanced chip production.
According to the announcement, the new facility will focus on producing next-generation III–V chips, which are critical for applications in artificial intelligence, quantum computing, advanced communications, aerospace technologies, and defense systems. The project aims to enhance Israel’s technological independence and to position the southern region as a growing hub for high-tech manufacturing.
The initiative is being advanced in cooperation with several government bodies, including the Ministry of Economy, the Ministry of Defense, the Israel Innovation Authority, the Israel Land Authority, and the municipality of Ashkelon. While the initial investment volume is substantial, comparable chip plants worldwide often require significantly larger budgets, suggesting that further financing stages may follow.
The project is also part of a broader national effort to accelerate economic development in Israel’s south, expand local industry, and attract new talent and innovation to the region.
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