Apple will begin work on a $1.4 billion chip fabrication plant in the Israeli city of Tel Aviv, an industry source said Tuesday.
Apple, the world’s largest manufacturer of smartphones, is looking at the manufacturing of chips for Apple TV, the Apple Watch, iPhone and other products in the country, the source said.
Apple has been developing the chip manufacturing facility in Israel since 2017, the sources said.
Apple’s Israel production facility will produce a total of 50,000 chips a year, or one-third of the company’s global chip production capacity, the industry source told The Wall St. Journal.
Apple is currently in the midst of a major redesign of the iPhone X. The device, which debuted at the September 9 Apple event, has been plagued by overheating issues and a slew of technical problems.
Apple has reportedly been struggling to find a new manufacturing partner for the iPhoneX and has said it may have to cut its workforce by half, with a $2 billion cut.
The chip manufacturing work will be done in a new facility at the site of a former state-owned nuclear power plant, the first in Israel, the report said.
The source did not say what the new manufacturing facility would do for Apple.
Apple’s first major project in Israel is expected to begin this year, the Wall Street Reuters/Ipsos poll showed last month.