This looks more certain now. According to the Israeli newspaper, Ha'aretz, Apple will open its first R&D center outside the US, in Israel. Heading the center will be Aharon Aharon, an Israeli entrepreneur, who is in Cupertino right now, preparing for the job.
Aharon will probably be a Senior VP for VLSI as well, according to the newspaper sources.
Here is the link to the original article (in Hebrew), though you can run it through your favorite translation web site.