Geopolitics, lobbying and money. Businesses go where their government can get them the best deal, and to countries whose government most accommodate their needs. Israel and Japan are close allies of the US. Japan is willing to invest a lot of money too in fabs. The Anglosphere distrust the Germans and the French, and vice versa.

Israel has an Intel fab already

Wikipedia's list of fab lines https://en.wikipedia.org/wiki/List_of_semiconductor_fabricat... has 4 in Italy, 3 Intel ones in Israel and 2 by an Israeli firm named Tower Semiconductor, which on its page has 2 in the US plus there's a joint venture with more. To get an idea about how this can go in the less cutting edge market, all but one of their fab lines was purchased from another company or in one case acquired through a merger.