Export.gov: Electronic Component Market in Israel
Source: Export.gov – June 2017
Best Prospects/Services
Israel is a major importer of electronic components. As a developed technology market, Israel is always looking for innovative technologies and components to enhance product technical features. Developments in the Israeli telecom, defense and homeland security markets have had a positive effect on the increased demand for electronic components. Israel’s purchasing nature is based on two main factors, price and technical support, which Artec Lantec excels at providing.
Sales & Distribution Opportunities
Israel offers opportunities for U.S. exporters of active components, RF & microwave, power amplifiers and semiconductors. There are a large number of Israeli companies that represent U.S. firms in this sector, always looking for new-to-market U.S. companies with good service and competitive prices that they can represent.
Israel – Market Opportunities
Hi-tech and defense dominate Israel’s trade numbers, and Israel remains a global center for hi-tech design and R&D. Hi-tech continues to provide opportunities for U.S.-Israel commercial partnerships, specifically in ICT technologies including cyber security, safety and security equipment and services, defense equipment, medical technologies and biotechnology products. Power generation and education/training also represent good opportunities.
U.S.-Israeli commercial linkages often consist of U.S. firms providing electronic inputs which Israeli firms integrate into final products destined for re-export.
Road technology and infrastructure projects could offer millions of dollars’ worth of export opportunities for U.S. firms over the next five years, especially since Israel adopted U.S. standards in intelligent transportation systems.
Health IT in Israel is very advanced in the implementation of multifunctional, interoperable health IT systems built around electronic medical records. However, since local software development companies and integrators provide Israel’s health IT infrastructure and services, there are limited opportunities for U.S. SMEs in this sector.
Through the large U.S. Foreign Military Funding/Sales program in Israel, the size of the aerospace industry exceeds $3 billion annually and most major procurements for the Israel Air Force originate in the U.S. The Israel Air Force (IAF) is in the process of a staggered replacement of its F-16 fleet of fighter aircraft with F-35s, and a helicopter procurement plan is under consideration.
Since 2009, Israel has discovered over 900 Billion Cubic Meters (BCM) of offshore natural gas. U.S. energy company Noble Energy and its local partners are supplying gas from the Tamar field that provides for approximately 60% of Israel’s electricity needs. After a protracted public debate and the Israeli High Court’s intervention, the Israeli Prime Minister’s Cabinet finally agreed on a revised Gas Framework in late May 2016 paving the way for Noble Energy’s development of the Leviathan gas field. Noble believes the Leviathan field is on track for first production by the end of 2019.
Israel is recognized as a leading player in the semiconductor industry with five active semiconductor manufacturing plants (fabs) in Israel; three owned by Intel and two by Tower/Jazz. Intel has invested approximately $6 billion in upgrading its Kiryat Gat fab facility.
Prepared by U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.