Ashkelon to get $470 million industrial complex focused on semiconductors and deep tech
Awz and Nadav B. Logistics are joining forces to develop facilities for compound semiconductor technologies, with applications ranging from AI infrastructure and quantum computing to communications and defense.
The Canadian-Israeli investment group Awz, founded and managed by Yaron Ashkenazi, and the Nadav B. Logistics Group, controlled by Nadav Balila, have signed a strategic investment agreement to develop advanced industrial facilities in Ashkelon as part of the city's planned National Deep-Tech Park. Under the agreement, Balila will invest approximately NIS 1.5 billion ($470 million) in acquiring land and constructing the facilities.
As part of the deal, Balila acquired a 67-dunam plot from the Israel Land Authority (ILA) through a tender exemption, at an estimated cost of NIS 400 million ($125 million). He plans to develop approximately 70,000 square meters of industrial and logistics space, including underground facilities, at an estimated construction cost of NIS 1.1 billion ($343.75 million). The parties have also agreed on an option to expand the project through the allocation of adjacent plots, potentially increasing the total land area to 113 dunams and the built-up area to 120,000 square meters.
The partners intend to advance detailed planning as soon as possible, with construction expected to begin within approximately two years. Balila will be responsible for acquiring the land and constructing the facilities, while Awz's semiconductor division, working with global partners, will establish several semiconductor fabrication plants (fabs) at the site.
The initial facilities will focus on compound semiconductor technologies for the communications and photonics industries. Their output is intended for both defense and civilian applications, including components used in artificial intelligence (AI) infrastructure, quantum computing, and the space and defense industries. The plans also include an academic research institute dedicated to deep-tech technologies and professional workforce training. The institute is expected to be developed in partnership with industry players and academic institutions and located alongside the fabrication plants.
Awz is a Canadian-Israeli venture capital fund and investment group specializing in startups in cybersecurity, artificial intelligence and defense. It manages more than NIS 1.5 billion ($468.75 million) in venture capital and focuses on building technology companies in quantum technology, photonics, AI and cybersecurity, supporting them from the pre-seed stage through advanced stages of technological and business development.
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From right to left: Aviv Prianti, Yaron Ashkenazi, Nadav Balila, and Aviv Kohavi
(Photo: Rafi Deloya)
Following the October 7 attacks, Awz decided to pursue the establishment of critical national infrastructure projects in Israel, spanning both physical and digital infrastructure, beginning in Ashkelon. The initiative represents a planned investment of approximately NIS 5 billion ($1.56 billion) and is being advanced through the group's infrastructure arm, Awz Infrastructure.
The group was founded and is managed by Canadian-Israeli businessman Yaron Ashkenazi. Its members include former senior officials from Israel's, Canada's and the United States' security and intelligence establishments. Prominent Israelis associated with the group include former IDF Chief of Staff Aviv Kohavi, former Israel Police Commissioner Roni Alsheikh, former Mossad director Tamir Pardo, and former Bank of Israel Governor Prof. Jacob Frenkel. Former Canadian Prime Minister Stephen Harper is also associated with the group.
The Nadav B. Logistics Group, controlled by entrepreneur Nadav Balila, specializes in identifying, acquiring, planning, developing and managing projects in the industrial, logistics and commercial sectors. The company has recently expanded into energy and infrastructure, as well as data center development.
Awz was represented in the transaction by attorneys Avi Grodberg, Etti Koren and Lee Golan of Koren-Grodberg & Co., and accountants Yigal Rofhe and Igal Manasherov of Fahn Kanne & Co. Grant Thornton Israel. Nadav B. Logistics Group was represented by attorney Adam Eytan of Herzog Fox & Neeman.
