Opportunities for Industrial Cooperation and Investment in Israel
Electronics
Israel’s Biggest Export Sector


E lectronics is by far the country’s leading and largestexport sector with overseas sales of more than $27billion per year, well over half of the country’s in dustrial (non-diamond) exports. Development of the mos advanced technologies and high-tech know-how and solu tions also makes the electronics sector the country’s mos profiable industry with a minimum added-value of 45%.

Recognized Global Brand
Israeli electronics has become a recognized global brand, which has enhanced the country’s name worldwide. Delegations from around the world visit Israel to learn and apply what is taking place in the country, and while this is a matter of great pride for Israel, it also poses challenges for the country’s industry in a global market, which is becoming increasingly competitive. Israel’s electronics sector is striving to successfully meet the challenges and continue to grow.
Israeli electronics has become a recognized global brand, which has enhanced the country’s name worldwide.
Initially built around smart defense industries, multi-faceted commercial applications have been developed over the years in such areas as telecommunications, medical systems, industrial equipment and components. The majority of the more than 150 Israeli companies traded on the New York and European stock exchanges, are in the fild of electronics and there are over 300 companies operating in this sector.
Israel’s electronics industry excels in developing systems and solutions for the following areas: micro-electronics, semiconductors, ICT, big data, digital health, medical devices and diagnostic systems, electro-optics, test equipment and measurement, industrial control, textiles, printing, agriculture, defense electronics, aerospace systems, computerized and peripheral equipment, homeland security systems and equipment including cyber security, water technologies and renewable energy.

International Development Centers
There are over 80,000 people directly employed in the electronics industry, including more than 35,000 engineers and scientists and 25,000 technicians of whom 20,000 are university graduates. Tens of thousands more professionals are employed on a sub-contracting basis. The depth and breadth of high value-added resources combined with Israel’s quality work force has attracted numerous international corporations seeking investments and strategic partnerships including Intel, Samsung, Google, Apple, Facebook, Microsoft, Qualcomm, Broadcom, Applied Materials, CA, IBM, Cisco Systems, HP, Motorola, Johnson & Johnson, General Electric, Philips, and Siemens to name just a few.
In the fild of software development, Israel has emerged as a major international power with a world-renowned reputation as a design center. In start-ups, of which Israel has the largest concentration outside of the US, medical electronics, electro-optics and semiconductor equipment feature prominently. In recent years the trending focus has been on big data, cyber security, digital health, and smartphone apps.
Israel’s electronics industry particularly excels in inter-disciplinary areas and the ability to incorporate different industries and components through electronics.

Defense Electronics Systems
The scope of activities in Israel’s electronics industry is extremely diverse. First and foremost Israeli companies have made the battlefild a smart arena with a range of electronic, digital and computerized electronic warfare systems ranging from intelligence and communications systems to unmanned air vehicles (UAVs). Today’s generals can use comprehensive leading edge intelligence data gathering systems developed in Israel and tested in real-time conditions to monitor the enemy’s movements and manage the dynamics of an ongoing battle.
Israel’s defense industries are able to supply armed forces with equipment ranging from small VHF/FM radio sets and tactical radio transceivers to data link real time video, telemetry and command systems. C3 systems can assist ground forces by providing precise data, while C4I systems shorten fiing time for artillery pieces. Laptop and hand held computers have been ruggedized for fild applications and can be used for tactical data dissemination and command control capabilities in battle. In addition, airborne and ground signal intelligence systems developed by Elta Systems Group, a subsidiary of Israel Aerospace Industries (IAI), deliver fast and accurate detection and interception of threats using complex algorithms and functioning in the densest electromagnetic environments. Indeed IAI has enabled Israel to develop the world’s fist air-to-air missile and become one of only eight countries with an independent space launch capability.
Elisra Electronics Systems has developed image transmission systems for wideband data, electro-optical and radar sensors as well as microwave and RF components, while Nice Systems produces integrated monitoring and digital recording solutions for COMINT intelligence systems applications. Rafael Advanced defense Systems offers customized solutions and advanced combat systems, including a diversifid array of innovative solutions at the
Israel’s high valueadded resources and quality work force attract many international corporations seeking investments and strategic partnerships
leading edge of global technology, from underwater systems through naval, ground, and air superiority systems to space systems. Defense electronics specialist Elbit Systems and its subsidiary El-Op also offer a wide range of technologically advanced defense systems. Elbit operates in the areas of military and commercial aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance (“C4ISR”), unmanned aircraft systems (“UAS”), advanced electro-optics, electro-optic space systems, EW suites, airborne warning systems, ELINT systems, data links and military communications systems and radios. The company also focuses on the upgrading of existing military platforms, developing new technologies for defense, homeland security and commercial aviation applications and providing a range of support services.


Commercial Electronics Sector
In the commercial sector, Orbotech is a world leader in Automated Optical Inspection (AOI) systems. ECI Telecom provides innovative, managed network solutions, enabling clients to maximize infrastructure capacity and Gilat Satellite Networks designs and manufactures VSAT satellite earth sta tions and related equipment. DSP Communications, which develops chips used in mobile phone communications was sold to Intel for $1.6 billion. AudiCodes provides advanced VoIP and data networking products, and RAD Group is a leader in the network and telecommunications industry. Check Point Software is a leader in Internet security and CyberArk Software is a pioneer in Cyber Security.
Stratasys is a global leader in the exciting new world of 3D printers. The company’s patented FDM®, PolyJet™, and WDM™ 3D Printing technologies produce prototypes and manufactured goods directly from 3D CAD fies or other 3D content. Systems include 3D printers for idea develop ment, prototyping and direct digital manufacturing. Stratasys subsidiaries include MakerBot and Solidscape, and the company operates the digital parts manufacturing service, Stratasys Direct Manufacturing. Stratasys has more than 2,800 employees, holds over 600 granted or pending addi tive manufacturing patents globally, and has received more than 25 awards for its technology and leadership.
MobilEye has developed a vehicle collision avoidance system, which is seen as an important building block in the emerging fild of automatically driven cars. The company is a technological leader in the area of software algorithms, system-on-chips and customer applications that are based on processing visual information for the market of driver assistance systems (DAS). Mobileye’s technology keeps passengers safer on the roads, reduces the risks of traffi accidents, saves lives and has the potential to revolutionize the driving experience by enabling autonomous driving.
In the commercial sector, Orbotech is a world leader in Automated Optical Inspection (AOI) systems.
Other Israeli achievements include: contactless smart-card interface; ultra-thin chip-size packaging; innovative semiconductor equipment; the world’s smallest “on-board” fuse for FSL hard-disk drives; an electronic alarm device for protecting phone and fax lines; ASIC and VLSI design and manufacture; in-situ control monitors for metrology applications in micro-electronics; commercial applications for spectral imaging and highly integrated low-cost FDDI controllers.
Backing up these successes, are Israel’s academic institutions, which are renowned worldwide for their high standards and ability to provide engineers with the latest technological training. The typical Israeli high-tech electronics executive would not only have a university degree, but would have served as an offier in the Israel Defense Forces, acquiring the ability at a very young age to make real-time decisions under pressure.
Another factor behind the success of this sector is the signifiantly high but carefully selective grants offered by the government through the OCS, while venture capital usually takes up where OCS seed money leaves off.

Remaining Competitive
With the highly competitive global high-tech industry hungry for new ideas in such filds as mobile communications and Internet apps, medical devices and more, Israel’s proven capabilities mean that this sector is enjoying a surge in demand. However, nothing can be taken for granted and Israel’s electronics industry continually strives to become increasingly competitive and meet the challenges posed by swiftly moving developments and changes. Israel has set itself the target of reaching annual high-tech sales of $40 billion within the coming few years.



Produced By: Daniel Uzan Media & Communications