Money is certainly part of it, the Israeli government tends to subsidize these sorts of initiatives. Costs would typically be lower vs. other options like Japan, Germany or the USA even without those subsidies.

Israel has a long history of semiconductor expertise. From Intel's first R&D office outside the US in 1974 to many others. Mellanox, Tower Semiconductors etc. There's a lot of know-how and expertise and Israel would typically be considered one of the top 10 (if not higher) countries in the world in this area.

https://www.computer.org/publications/tech-news/neal-notes/i...

https://www.diskmfr.com/unveiling-israeli-semiconductor-powe...