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Explore the thriving Israeli high-tech environment and the opportunities it presents in the global market. Discover the entrepreneurial spirit, innovative ideas, and collaborations driving success in this rapidly evolving industry.
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Tapping the Opportunity in the Global High-Tech Markets Dan Vilenski Former Chairman, Applied Materials Israel
The Vilenski Business card BIRD Israel - U.S. Binational Industrial Research and Development Foundation 1997 1986 1969 2004
Israeli High-Tech Environment • Socialism is moving out, entrepreneurial spirit, similar to the “good old days” in Silicon Valley is taking it’s place No change • Young entrepreneurs with “chutzpah” and innovative ideas motivated by some of the latest successes of many Hi-Tech Israeli - start-ups No change • New generation of successful managers, trained in the USA are moving back to Israel The trend is accelerated due to better job alternatives in Israel
Israeli High-Tech Environment (cont.) • Lack of experienced scientists and engineers Large number of experienced professionals are available • Manufacturing rising to international standards ISO 9000, TQM etc. No change • Free trade agreements with the European Community and the USA No change with some risk of boycott from Europe • Business and cultural links with international markets No change
Israeli High-Tech Environment (cont.) • Military technology developed without economic consideration ready and available for commercialization No change • Large number of qualified University graduates No change • Regional instability without a solution in sight No change -Tech: Was I s Being Changed • Poor cooperation between the Academy and the Industry Budget cuts have forced the universities to seek outside funds
Israeli High-Tech Environment (cont.) • High Valuations of Israeli companies, start ups as well as mature companies The current business environment offers attractive valuations for quality companies • Israel will be the center of the “New Middle East” The question is when?
Foreign Subsidiaries in Israel(partial list) • Intel • Microsoft • IBM • Sun Micro systems • CA • EDS • BMC • Cisco • 3 Com • HP • Texas Instruments • National S.C • Alcatel • Philips • Ericsson • Nokia • ADC • Qualcomm • Applied Materials • KLA - Tencor • Kulicke & Soffa • Bio-Rad • BAE Systems Ind. • Astronautics • Sigma • Invitrogen • J&J • Merck • Deutsche Telekom • British Telecom • Daimler Chrysler • Marvel • ST Microelectronics • Infineon • Analog Devices • Vishay • AVX (Kyocera) • General Electric • Philips Medical • Medtronics • Boston Scientific • Motorola • Lucent Technologies • Avaya • Nortel • Siemens
Foreign Investments in Israel 2006 $4,000M $4,000M $1,500M $800M $300M $150M $150M $107M
A Success Story Applied Materials Team work between Israeli and US teams enabled: • Identified correct market needs - products • Successful integration of newly acquired companies’ • Successful management of transition into a new company culture • Successful integration of financial and information systems
Product People Infrastructure A Success Story Applied Materials People
ORBOT InspectionTools Wants to enter the metrology & inspection markets Metrology Tools The largest supplier of products and services to the global semiconductor industry OPAL OPAL Success Story Applied Materials
The largest supplier of products and services to the global semiconductor industry Success Story Applied Materials ISRAEL
The state of Israel Soccer field White blood cell Golf ball The Challenges Detecting 30nm defects on a wafer is like… 300mm Wafer 30nm defects
Inspection Review Metrology Inspection G3 HP G3 G3 FIB ComPLUS 3T UVision Elite RETicleSEM VeritySEM 2 Aera SEMVision Family Applied Materials PDC Portfolio Wafer Mask
Strategic Partnership based on the Academia “Golden Egg” • Complement Product Line • New Technology • Potential Increase of Market Share • Shorter Time to Market • Risk Reduction • Financial Resources 1+1>2 • Bio-Rad • US company • 1.3 $ Billion sales • ProteOptics • Israeli start-up • Originated at the Technion
The Product “Golden Nugget”
The Future: Sustainable Development • Renewable Energy • Alternative energy • Storage of energy • Saving of conventional energy • Water • Environment • Biotechnology • Nanotechnology
Summary Main points for the unique business climate opportunity • Manpower - availability of quality professionals • Creativity - plenty of word-class innovations from individuals and universities • Valuation – companies with good intellectual property and/or product are having difficulties raising money and are therefore willing to raise funds at lower valuation rates • Financial – governmental financial support for capital and R&D investments are available to “compensate” for the risks
The opportunities are great, it is worthwhile to try Conclusions BUT • There are risks in starting an operation in Israel • The geographic distance is not convenient • The regional instability is a problem