Israel Courts TSMC, Samsung for 2nm Fab and 100,000-GPU AI Hub

Israel is seeking to build on its strength in chip design and artificial intelligence by adding leading-edge semiconductor manufacturing and large-scale computing infrastructure. The country’s AI chief is courting Taiwan Semiconductor Manufacturing Co. and Samsung Electronics to assess a 2-nanometer fabrication plant, a move aimed at reducing exposure to advanced-chip supply constraints and strengthening Israel’s position in the global semiconductor and AI value chains.

The broader proposal calls for a massive AI data-center cluster capable of housing 100,000 graphics processing units within five years. The fab outreach and computing project remain at the lobbying and assessment stage, with no investment figure or construction timetable disclosed. Power has emerged as a central obstacle: advanced foundries and GPU-heavy facilities require vast, reliable electricity supplies, while constraints in Israel’s generation capacity and transmission grid could delay or limit the planned expansion.