Intel plans to invest $11 billion to build a manufacturing facility in the country, where some of its most advanced technologies have been hatched.
Home to more startups per capita than any other nation thanks to its advanced military and government support, Israel is suffering from a shortage of talent.
While multinationals like Intel, Apple and Google have snapped up local startups and set up research centres, competition is making it tough to find skilled workers.
Tech companies in Israel were unable to fill about 17,000 positions in 2018, according to Start-Up National Central, a nonprofit research organization, and that figure continues to climb.
To address this gap and lure talent, Intel has upped the ante at its new development centre in the Tel Aviv suburb of Petah Tikva. Replete with environmentally friendly systems, a smart gym and massage parlour, the structure also has 14,000 sensors that monitor motion, light and air to make sure workers are comfortable.
If these efforts give Intel an edge in hiring, rival companies are expected to follow suit.
The company declined to comment on how much it spent on the development centre. Israeli media claims it will be about $188 million.