Israel Courts TSMC, Samsung for 2-Nanometre Fab and 100,000-GPU Hub
Israel is treating advanced semiconductor production and sovereign AI computing capacity as strategic infrastructure, seeking to reduce its government and technology sector’s reliance on overseas chips and data centres. Erez Askal, the national AI director appointed by Prime Minister Benjamin Netanyahu, aims to build on the country’s strengths in cybersecurity, robotics and defence technology as Gulf rivals, including the United Arab Emirates and Saudi Arabia, accelerate investment in large-scale AI infrastructure.
Askal has held talks with Taiwan Semiconductor Manufacturing Co., Samsung Electronics and Intel about establishing an Israeli fabrication plant capable of producing chips at 2 nanometres or below, according to reports published on July 24, 2026. No investment amount or construction commitment has been announced. He also wants a 100,000-GPU computing cluster within five years, but power is a major constraint: pending data-centre connection requests total 27 gigawatts, prompting Israel’s Electricity Authority to suspend new applications this year.
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The history behind this eventTSMC Adopts NVIDIA AI and Accelerated Computing to Transform Chipmaking
TSMC is the world's leading chip foundry, and its advanced processes involve highly complex work spanning computational lithography, transistor design and process control. Its adoption of NVIDIA's CUDA-X accelerated computing services and AI technology could help shorten development cycles for next-generation AI chips, improve production yields and reduce the energy consumed by computation-intensive manufacturing processes.
TSMC said it would deeply integrate NVIDIA CUDA-X and AI systems into its core semiconductor operations, including computational lithography, transistor simulation and process control. The initiative is intended to accelerate the development and production of next-generation chips while improving yields and energy efficiency. Available reports did not disclose the announcement date, investment amount, mass-production schedule or expected scale of the improvements.
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