Israel Japan | Business Guide | 2023

T he thirst for advanced consumer electronics products, a rise in disposable income and the love for convenience has created a huge demand for integrated circuit chips to be add to products like washingmachines, smartphones, refrigerators, TVs andmore. Israel has become the hub to develop these chips. Global electronic companies like Apple, Intel, Samsung, Huawei have invested large sums ofmoney inbringingout newproducts, giving the semiconductor industry in Israel a big push. The semiconductor sector in Israel has the highest total per company exports among all other high-tech sectors. Given’s Israel’s expertise in technology and innovation, it receives billions of dollars of funding frommany countries and global technology majors. With all the big tech multinationals like Intel, Microsoft, SAP, IBM, Samsung, CISCO setting up their research centres in Israel, Tel Aviv is considered a major technology cluster. After China and the US, Israel is the third country to receive the highest funding for startups in the semiconductor industry. With cutting edge technology and innovation, the semiconductor industry in Israel is driving growth in microprocessors, IP and networking communications, wireless, medical, consumer and automotive tech, data and voice communications and defense too. After China and the US, which occupy the first and second spots respectively, Israel receives the highest funding in the semiconductor startups and SME space. Israel’s revenue from the semiconductor industry in 2020 was about $ 19 . 8 bn while the revenue forecasted for 2025 is $ 41 . 6 bn. Israel has five semiconductor plants, of which three are run by Intel. With a high concentration of design centres in Israel, many companies design and produce components for the Room for collaboration: Israel’s semiconductors industry is big business Israel is the third country to receive the highest funding for startups in the semiconductor industry. Japan’s semiconductor manufacturing equipment sales are showing steady growth Semiconductor industry in Japan shows steady growth 50 % of the top 15 semiconductor equipment-manufacturing firms in the world are from Japan. TheWorld Semiconductor Trade Statistics organisation’s report says that the semiconductor industry in 2022 worldwide grew by 16 . 3 (Y-O-Y) per cent, and then revised down to 4 . 4 %. This despite the uncertainties prevailing in themarket due to Covid- 19 and the political climate in the world. The semiconductor sector in Japan also reportedgrowthof 12 . 6 (Y-O-Y) percent in 2022 . From 36 , 471 Million USD in 2020 , to 43 , 687 Million USD in 2021 , it stood at 49 , 200 MillionUSD in 2022 . The projections for 2023 stand at 51 , 554 Million USD. In the 80 s, Japanwas the leading producer contributing to the semiconductor industry worldwide, commanding about 50 per cent share of the pie. But now, that has fallen to about nine per cent due to internal challenges. Despite this, Japan still has a fair share of some high-valuemanufacturing especially in areas of memory (NAND and DRAM), sensors and power semiconductors and micro controller systems. It is ranked as the fourth biggest market for semiconductor manufacturing. According to the figures shared by the Semiconductor Equipment Association of Japan (SEAJ), Japan’s semiconductor manufacturing equipment sales stood at $ 33 bn, a record figure. With this sector showing steady growth, SEAJ is confident that its projections for the next few years will be achieved comfortably. No wonder, of the top 15 semiconductor equipment manufacturers in the world, 50 per cent of them are Japanese firms. Israel-Japan > Business Guide > 2023 62 > Semiconductors industry > Sector Review