Canadian–Israeli group Awz plans major chip plant in Ashkelon

Canadian-Israeli investment group Awz Ventures is moving ahead with a massive new semiconductor project in southern Israel, setting aside roughly 5 billion shekels (about $1.3 billion) to build an advanced fabrication plant in Ashkelon. 

The facility is intended to support both civilian tech companies and Israel’s defense sector.

The new plant will serve as the anchor for Awz’s national deep-tech hub, known as The RISE, which is being developed inside Ashkelon’s growing Tera-Park industrial area. 

The initiative has brought together a long list of government partners, including the Economy and Finance ministries, the Israel Innovation Authority, the Directorate of Defense R&D, the Israel Lands Authority, and the Ashkelon Municipality.

Awz says the upcoming Fab will focus on producing high-performance semiconductors that surpass traditional silicon chips in both speed and energy efficiency. 

Such components are expected to play a central role in emerging technologies ranging from artificial intelligence and quantum computing to next-generation communications and strategic defense systems.

This will be Israel’s first facility designed to manufacture chips using III–V compound semiconductors on silicon and other base materials. 

The plant will also incorporate advanced packaging and integration capabilities, enabling it to function as a hybrid hub serving domestic and international production needs.

Awz plans to run the plant under an “Open Fab” model, allowing Israeli startups, universities, and global companies to make use of its manufacturing lines — a move intended to spark broader innovation throughout the sector.

A National Ambition

Yaron Ashkenazi, Awz’s CEO and founder, called the project a “once-in-a-generation initiative,” arguing that strengthening Israel’s semiconductor ecosystem is essential for the country’s technological autonomy and economic durability — especially after the shock of the October 7 Hamas attack. 

He described The RISE as a cornerstone for both regional recovery and Israel’s future standing in deep-tech fields.

Beyond fabrication, The RISE is set to house facilities for research, chip design, and startup incubation. Awz also plans to launch an applied training center in cooperation with international academic partners to help close the widening talent gap in engineering and advanced sciences.

Economy Minister Nir Barkat praised the project as a major step toward establishing Israel as a global chip-manufacturing hub, saying it represents a strong combination of foreign investment, local innovation, and regional development. He visited the site with Ashkelon Mayor Tomer Glam and Ashkenazi, emphasizing the city’s growing role in Israel’s industrial expansion despite years of rocket fire and security challenges.

Mayor Glam called the initiative a significant show of confidence in Ashkelon’s future.

The project’s first phase will be funded with 3 billion shekels. Over the past decade, Awz has invested more than 2 billion shekels in Israeli deep-tech companies specializing in technologies with both commercial and defense applications. 

Establishing a major infrastructure-heavy venture marks a shift for the firm, which until now primarily operated as a venture capital group managing more than $500 million worldwide.

A Strategic Move in a Global Chip Race

Nations across the world are racing to strengthen domestic semiconductor production and reduce dependence on fragile global supply chains. Israel’s push to build its own advanced manufacturing capabilities is widely viewed as a key element of both economic strategy and national security.

Awz’s advisory board includes several high-profile figures, among them former Canadian Prime Minister Stephen Harper and former leaders of the CIA, FBI, and Mossad. 

The group has long maintained deep ties with intelligence and defense organizations, as well as major multinational companies.

Ashkenazi has framed The RISE as a project intended to generate not only technological advances but also social and demographic renewal. The initiative aims to draw young professionals and veterans of Israel’s elite tech units to the South, helping bolster the region’s workforce and overall resilience.

“This is a foundation for Israel’s independence in semiconductor production,” Ashkenazi said. “We’re not just building a factory, we’re building the future.”