A Heavy Blow to Tel Aviv: Sony Shuts Down Its Chip Development Center in Israel

According to the economic newspaper Globes, Sony has decided to terminate its chip development operations in Israel and revert the business to its former identity under the name Altair Semiconductor—a move described as a clear retreat from its earlier plan to establish a permanent development center in the country.

The report states that the Hod Hasharon plant in Herzliya, which employs around 200 people, will continue operating as an independent company. The site had been one of Sony’s most significant investments in Israel since its $212 million acquisition of the startup Altair in 2016.

The decision follows a series of layoffs in recent months, as part of a broader restructuring plan within the Japanese corporation. According to Globes, Sony had aimed to use the center to enter the market for advanced communication chips, particularly those supporting LTE and 5G networks. However, the deteriorating economic and security environment, coupled with declining foreign investment, has prompted the company to reconsider the viability of continuing its operations in Israel.

Globes described the move as a strategic loss for Israel’s tech sector, which is already struggling with a flight of foreign investors and waning confidence among global corporations in the wake of the ongoing conflict.