Awz, a Canadian defense-tech investment fund advised by former political and military leaders including Stephen Harper and Aviv Kohavi, has committed to an initial NIS 5 billion investment towards the construction of a new chip fabrication plant in Ashkelon’s Tera Park industrial zone. The planned 70,000 square meter facility will encompass R&D centers, silicon wafer manufacturing, and assembly/testing capabilities, employing 350 personnel, including 150 dedicated to research and development. This initiative, aiming for a total investment of NIS 40 billion, will focus on producing chips utilizing Group III-V compounds on silicon substrates for applications spanning AI infrastructure, 5G/6G communications, quantum computing, and defense technologies, with an emphasis on dual-use capabilities.
Awz Fund Initiates New Israeli Chip Plant
Canadian fund Awz initiated a new NIS 5 billion (approximately $1.35 billion USD) chip plant in Ashkelon’s Tera Park, marking the first private facility of its kind in Israel since Intel’s Kiryat Gat fab two decades ago. The ambitious project, potentially reaching NIS 40 billion in total investment, will span 70,000 square meters and employ 350 people, including a significant 150 dedicated to R&D. This signals a strategic push for domestic semiconductor production, lessening reliance on global supply chains.
The plant will focus on advanced chip manufacturing utilizing Group V-III compounds on silicon substrates – critical for emerging technologies. Specifically, production will target chips essential for AI infrastructure, quantum computing, 5G/6G communications, and defense applications. Awz’s “hybrid” manufacturing approach will enable integration with existing facilities, fostering collaboration, and provide open access for startups and academic research – boosting innovation.
This investment isn’t solely commercial; Awz highlights “dual-use” applications, prioritizing technologies for both defense industries and commercial sectors like automotive and medical devices. With NIS 3 billion allocated for the first phase, and leveraging partnerships with the Ministry of Economy, Israel Lands Authority, and Innovation Authority, the plant aims to become a national deep-tech center, building on Awz’s prior NIS 2 billion investment in Israeli deep-tech startups.
Investment Details and Facility Scope
Canadian fund Awz is spearheading a significant NIS 5 billion (approximately $1.35 billion USD) investment in a new chip plant located in Ashkelon’s Tera Park. This initial funding, alongside collaborative support from Israeli government entities, will establish a 70,000 square meter facility. The plant aims to manufacture advanced chips utilizing compound semiconductors (Group III-V on silicon), a technology crucial for next-generation applications. This represents the first privately-owned chip production facility of its kind in Israel, shifting focus towards domestic semiconductor capability.
The facility’s scope extends beyond simple fabrication; it will integrate R&D centers alongside silicon wafer manufacturing, assembly, testing, and packaging – creating a complete chip production ecosystem. Awz anticipates a total investment reaching NIS 40 billion, with the first phase consuming NIS 3 billion. Crucially, the plant will employ 350 people, including 150 dedicated to research and development, fostering innovation in areas like AI infrastructure, 5G/6G, and quantum computing.
This project emphasizes “dual-use” technology, meaning chips will serve both defense industries and commercial sectors—including automotive, medical devices, and communications. The facility’s “hybrid” design will allow for flexible production lines and integration with existing facilities, and an “open format” will grant access to startups and academic institutions. Awz’s prior investments of over NIS 2 billion in Israeli deep-tech companies demonstrate a clear commitment to building a national center for advanced technology.
Dual-Use Applications and Technological Focus
A new NIS 5 billion chip plant, spearheaded by Canadian fund Awz in Ashkelon’s Tera Park, signals a significant push toward domestic semiconductor production. This facility, planned across 70,000 square meters, isn’t solely focused on commercial applications; it’s designed for “dual-use” – serving both Israel’s defense industries and commercial sectors like automotive, communications (5G/6G), and medical devices. The initial investment phase alone represents a substantial commitment to deep-tech and photonic chip development, aiming to reduce reliance on foreign chip sources.
The plant’s technical focus centers on advanced chip fabrication using Group III-V compounds integrated onto silicon substrates—a key technology for high-performance computing. Awz intends a “hybrid” production model, enabling seamless integration with existing Israeli and international facilities. Crucially, the facility will prioritize AI infrastructure, quantum computing applications, and next-generation communication technologies—areas where specialized chip design is paramount. This open access approach is designed to foster innovation by enabling startups and academic institutions to utilize the plant’s resources.
Awz’s prior investments of over NIS 2 billion in dual-use deep-tech ventures demonstrate a strategic commitment to bridging the gap between defense and commercial innovation. The planned expansion to NIS 5 billion, with NIS 3 billion allocated to the first phase, underscores the scale of this ambition. With 350 planned employees (150 in R&D), the facility aims to establish Ashkelon as a national deep-tech hub, bolstering Israel
