Meta ends global AR chip development, shuts down Israeli operations
Meta ends global AR chip development, shuts down Israeli operations
The process of winding down its AR chip operations began in October of last year when Meta started laying off employees globally in this division.
Meta, the parent company of Facebook, Instagram, and WhatsApp, has decided to shut down all of its global chip development activities in the augmented reality (AR) field, including those in Israel.
According to Fortune, developing custom chips for smart glasses was deemed too expensive, and it will instead use third-party chipmakers like Qualcomm for its augmented reality (AR) glasses.
Meta continues to design other types of chips.
Meta aims to redirect resources to the rapidly growing field of artificial intelligence (AI). Israel was initially expected to play a significant role in Meta's chip business due to the country's talent pool and extensive experience in the field. Much of the team came from Netanya-based firm Inomize, which Meta acquired in 2021. Around 90 employees from the team have been laid off as part of the closure.
The process of winding down its AR chip operations began in October of last year when Meta started laying off employees globally in this division, including in Israel. However, following the events of October 7, the company decided to postpone the layoffs in Israel, eventually completing them in January. The closure of the Israeli center was finalized with the departure of its head, Ofer Shacham, who left the company in August 2023. Meta plans to complete the layoffs of most employees in this division by the end of the year, leaving only a small team to manage relationships with external suppliers.
Meta stated: "This is part of the streamlining processes we announced previously. Meta continues to invest in Israel and employs hundreds of workers in the country."
