How Israel's Tussle With Hamas Negatively Impacting The Global Semiconductor Industry

Published  October 17, 2023   0
S Staff
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Israel-Semiconductor Manufacturing

Intel has five major locations that provide employment to 12,800 people and the work comprises AI and autonomous vehicles

Israel being a small country located outside East Asia plays an important role on the international semiconductor industry. The country produces scores of engineering talent and is an important destination for global semiconductor manufacturers and start-ups. The US based international semiconductor company Intel has been operating in the country for more than fifty years.

Intel has set-up loads of manufacturing and design centers in the country, while Nvidia, another giant semiconductor firm that specializes in making AI chips, has a huge operation in Israel. In fact, the Cupertino tech giant designs most of its silicon chips in Israel. Microsoft and Amazon have also set-up important semiconductor design units in the country. It is one of the very few countries in the world where cutting-edge chip design is being carried out. 

Of late, the tussle between Hamas and Israel, which created havoc throughout the country further endangers the chip supply chain ecosystem. Back in 1974, Intel had set-up its first production unit in Haifa, which was expected to turn out into an imperative design and research unit. In 2003, when laptops started gaining traction all over the world, Intel unleashed a new range of power efficient chips coupled with Wifi. Later, the chips were named as Pentium M and Centrino. 

Intel has five major locations that provide employment to 12,800 people and the work comprises AI and autonomous vehicles. Haifa has a share of the company’s server and PC markets. Apart from Haifa, Kiryat ghat is another major destination for chip production. Now, the point is how the geopolitical scuffle posed a negative impact on the semiconductor industry. An engineer for Nvidia has been kidnapped by the militants and later on, the company had to cancel its AI conference, which was scheduled to happen on October 15. Intel told CNBC TV 18, “We are closely monitoring the situation in Israel and taking steps to safeguard and support our workers.”