Download Israel`s Electronics and Software Industries - Mr

www.iaesi.org.il
IAESI
Israel Association of Electronics & Software Industries
ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
1
ISRAEL IN A GLANCE - 2006
• Population: 7,707,000
• Households: 1.8 M
• Urban Population: 91.5%
• Area - grand total 22,145 sq. km
• GDP: US $ ~140.5 B
• GDP Per Capita: US $ ~19.9 K
• Fixed line – 3,200,000
• Mobile – 7,757,000 subscribers
• Internet – Broadband subscribers – 1,250,000
ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
2
THE ELECTRONIC INDUSTRIES IN ISRAEL
Beginning:
1967 - after Military Embargo Following the Six
Day War
Pattern of Growth:
Maintenance Subcontracting
Build to Print
Build to Specifications Own R&D
Civilian Equipment: Spin-off from Defense Products & Technologies
Multinationals:
R&D Center
Production
ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
3
ISRAEL ELECTRONICS & SOFTWARE
INDUSTRIES
SALES & EXPORT (M$)
20,000
18,000
16,700
5,480
4,630
2,300
2,400
16,000
14,200
13,400
13,000
12,250
2,400
10,870
1,935
2,030
3,970
2000
3,375
4000
1,801
EXPORT
4,596
2,795
6000
2,210
6,000
5,310
2,320
6,840
9,130
8000
6,700
7,800
2,280
9,980
8,050
10,000
2,330
10,380
2,300
11,530
12,000
13,040 13,170
10,740
14,000
2,500
2,500
14,750
2,500
16,000
DOMESTIC
15,800
15,500
2,700
18,700
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
4
ISRAEL ELECTRONICS & SOFTWARE INDUSTRIES
EMPLOYMENT AND MANPOWER STRUCTURE
EMPLOYEES
66,300
70 , 000
62,000
60 , 000
56,200
58,800
53,400
50 , 000
42,700
45,000
47,700
54,800
57,200
59,500
62,000
53,500
50,500
39,500
40 , 000
30 , 000
20 , 000
10 , 000
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
5
ISRAEL ELECTRONICS & SOFTWARE INDUSTRIES
EXPORTS BY INDUSTRY GROUP 2006 – 16,000 M$
Medical
Systems
Civilian Comm.
& Telecomm.
22.9%
8.8%
Software
23.7%
13.4%
Components
17.8%
Industrial
Equipment
13.4%
Defense
Systems
ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
6
TELECOMMUNICATIONS EQUIPMENT
Fiberoptic & Photonic Systems
 SDH, SONET
 Access – XDSL
 ATM, Frame Relay
 IP Networks – Voice, Video, Data, Multimedia
 Routers, Load balancing

22.9%
Test Equipment, Quality Monitoring of Networks
 3G Applications
 Home Networks
 Storage Area Networks
 Wireless Local Loop, Microwave
 VPN, Firewalls
 Video-Compression, Video-Conferencing & Video Networks

ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
7
MAJOR MILITARY SYSTEMES

Missiles and Guided Weapons
 Anti Aircraft and Anti-Missiles Systems
 Radars - Airborne, Naval, Ground
 EW Equipment
 Fire Control Systems
 Command, Control, Communications
and Intelligence Systems
 Avionic Equipment
 Aircraft Retrofit and Upgrading
 Navigation and Positioning Equipment
 Tactical Airborne, Naval and Ground Communications
 Sights and Night Vision
 Simulation and Training Equipment
ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
13.4%
8
MAJOR INDUSTRIAL EQUIPMENT
 Computerized Production Equipment

Computerized Control Systems

Test Equipment

Training and Education Systems

Consumer Products

Security Equipment
ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
17.8%
9
MAJOR MEDICAL EQUIPMENT

Imaging and Diagnostic Equipment

Surgical and Treatment Equipment
8.8%

Monitoring Systems
ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
10
ELECTRONIC COMPONENTS
 SEMICONDUCTORS
Design Centers
 Manufacturing Facilities
 PASSIVE COMPONENTS
 Resistors & Networks
 Capacitors
 Transformers
 Batteries
 P.C. Boards
 ACTIVE COMPONENTS
 Tubes
 Power Supplies
 Oscillators
 Detectors
 Microelectronic Components
 Microwave Components

ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
13.4%
11
SOFTWARE
 INTERNET
 MULTIMEDIA
 SOFTWARE – PRODUCTS
23.7%
 SOFTWARE – TURNKEY PROJECTS
 SOFTWARE - SUBCONTRACTING
ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
12
ISRAEL ELECTRONICS & SOFTWARE INDUSTRIES
EXPORTS BY REGION 2006 – 16,000 M$
EUROPE
USA
35%
38%
5%
22%
ROW
ASIA
ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
13
HIGH-TECH CHARACTERISTICS IN ISRAEL
Strengths:
• Entrepreneurial Spirit
• Highly Qualified Scientists & Engineers
• Proven Track Record
Engines:
• Government Support (R&D, Investment)
• Venture Capital
Results:
• Strong R&D
• New Technologies and Applications
• Numerous New Start-ups
• International Involvement (Acquisitions & Subsidiaries)
ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
14
ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
Sp
ai
n
l
Si
ng y
ap
or
e
Ita
Ir
el
an
d
U
K
G
er
m
an
y
C
an
Sw a d
itz a
er
la
nd
Ta
iw
an
pa
n
Ja
U
S
Is
ra
e
l
Scientists & Engineers per 10,000 pp
15
R&D in Electronics and ICT as % of GDP
5
4
3
%
% R&D per GDP
% ICT R&D per GDP
2
1
D
IR
EL
AN
N
JA
PA
SA
U
EN
ED
SW
IS
R
AE
L
0
Source: IVC Research Center, VenfureOne
ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
16
Israel R&D in first place with 4.7% of GDP
* Total annual new bachelor’s degree or higher
Business Week Oct 11 2004
ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
17
START-UPS
Main Fields of Activities:
}

Telecommunications

Information Technologies

Semiconductors for…
}
Fabless

Medical
}
New Applications to Reduce
Health-Care Costs
Mobile, 3G, Broadband, Wi Fi, Internet,
Data Comm, Security, Wi Max
Conversion of Military Technologies to Civilian Products.
ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
18
Highlights in Israeli Innovation
Pentium (Intel)
 Centrino (Intel)
 Telecom Billing (Amdocs)
 Call Center Logging (Nice/Verint)
 Voice Mail (Comverse)
 Instant Messaging (ICQ, Ubique)
 PC Board Inspection (Orbotech)
 VoIP (Vocaltec)
 Two-bit per cell Flash Memory (Saifun)
 Disk on Key (M-systems)
 Firewall (Checkpoint)
 SW Performance (Mercury Interactive)
 AntiVirus (Alladin, Commtouch…)
 Virtual Colonoscopy (Given Imaging)

ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
19
FOREIGN ELECTRONIC SUBSIDIARIES
IN ISRAEL (PARTIAL LIST)
Intel
 Microsoft
 IBM
 Sun Microsystems
 Cisco
 3 Com
 HP
 Texas Instruments
 National S.C
 ST Microelectronics
 Infineon
 Analog Devices
 Vishay
 AVX (Kyocera)
 General Electric
 Philips Medical

Motorola
 Lucent Technologies
 Avaya
 Nortel
 Siemens
 Alcatel
 Philips
 Ericsson
 Nokia
 ADC
 Qualcomm
 Applied Materials
 KLA - Tencor
 Kulicke & Soffa
 BAE Systems Ind.
 Astronautics

ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
20
Foreign Investments in Israel 2006
4,000$M
4,500$M
1,500$M
800$M
300$M
150$M
150$M
140$M
ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
21
Foreign Investments in Israel 2006
(cont.)
90$M
90$M
76$M
50$M
Med Impuls
40$M
12$M
ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
22
Bill Gates, the Microsoft CEO, made his first trek
to Israel
“Considering the density of Israeli start-ups and
local successes, Israel is like a bit of Silicon Valley.
ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
24
CEO Ed Zander visit to Israel


-----Original Message----From: Zander Ed-AEZ111
Sent: Sunday, November 14, 2004 10:57 PM
To: Yanay Elisha-BCMS54; Nottenburg Richard-arn021
Cc: Brown Greg-CGB025
Subject: RE: Your visit to Israel
Elisha- I had a great time. You and your team did an outstanding job. I
was continually impressed by their knowledge of the business,
opportunities and issues and great work ethic. Motorola has a jewel in
it it's Israeli operation thanks to you and your senior team. Hope to see
you soon. Regards, ed
[email protected]
847-576-3000
ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
25
Asked how come he chose Israel as his first investment outside America, Buffett's
response was: "Some Americans came looking for oil, so they didn't stop in Israel.
We came looking for brains, so we did stop in Israel."
ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
26
ISRAEL ASSOCIATION OF
ELECTRONICS & SOFTWARE INDUSTRIES
Thank You
More information at our Website:
www.iaesi.org.il
ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007
27