US and Israel Sign MOU for 'Fort Foundry One' Semiconductor Park in the Negev with Nuclear SMR Power

The United States and Israel have signed a landmark Memorandum of Understanding to establish "Fort Foundry One," a semiconductor fabrication and AI data center campus spanning 4,000 acres in the Negev Desert — potentially powered by small modular nuclear reactors (SMRs). The agreement, signed on January 16, 2026, represents the most ambitious US-Israeli technology infrastructure collaboration in history.

Pax Silica Framework

The MOU was formalized between Israel's National AI Directorate, led by Brigadier General (Res.) Erez Eskel, and US Under Secretary of State Jacob Helberg. Fort Foundry One is the first bilateral project under the Trump administration's "Pax Silica" framework — a coalition of approximately 12 nations working to secure global semiconductor and AI supply chains.

Israel became the first country to sign a bilateral agreement under Pax Silica in December 2025, and the Negev facility represents the framework's inaugural physical infrastructure commitment. The Israeli government has pledged to issue all necessary licensing and permits within 120 days of application — a dramatic acceleration of the country's typically lengthy planning process.

Nuclear Power on Israeli Soil

The MOU references "high-intensity energy infrastructure" to power the campus, widely interpreted by industry analysts as pointing to small modular reactors in the 50–300 MW range. Given the arid Negev location and limited water resources, experts believe a High-Temperature Gas-cooled Reactor (HTGR) design is the most likely candidate, as it does not require cooling water.

The prospect of civilian nuclear power on Israeli soil raises significant diplomatic questions. Israel is not a signatory to the Nuclear Non-Proliferation Treaty (NPT), potentially requiring a novel regulatory framework with US oversight. Leading SMR vendors — including NuScale Power, X-energy, and BWXT Advanced Technologies — are believed to be under consideration, though no reactor design has been officially selected.

Economic Impact

While the total investment has not been publicly disclosed, industry analysts project the campus could represent a multi-billion-dollar commitment over its 15-year development timeline. The facility would create thousands of high-skilled engineering jobs in the Negev, aligning with Israel's long-standing policy of developing the southern desert region.

The semiconductor fabrication component addresses a critical gap in Israel's technology ecosystem. While the country is a global leader in chip design — home to major R&D centers for Intel, NVIDIA, Qualcomm, and Broadcom — it currently lacks domestic manufacturing capacity, leaving it dependent on TSMC and Samsung for production.

Non-Proliferation Concerns

The nuclear component has drawn attention from arms control analysts. "Any civilian nuclear facility in Israel will require unprecedented transparency mechanisms," said a researcher at the Institute for Science and International Security. "The US will need to develop a regulatory model that provides sufficient verification without compromising Israel's existing defense posture."

Israeli officials have emphasized that the energy infrastructure will be subject to full international oversight and will serve exclusively civilian purposes. The Energy Ministry is reportedly working with the US Nuclear Regulatory Commission on a joint licensing framework.

Fort Foundry One positions Israel at the intersection of two defining technology competitions of the 2020s: the race for semiconductor sovereignty and the push for next-generation nuclear energy. If realized, it would be the first operational SMR in the Middle East.