israel association of electronics & software industries

1ISRAEL ASSOCIATION OF ELECTRONICS & SOFTWARE INDUSTRIES - 2007

Israel Association of Electronics & Software Industries

www.iaesi.org.il

IAESI


• 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 IN A GLANCE - 2006ISRAEL IN A GLANCE - 2006


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

THE ELECTRONIC INDUSTRIES IN ISRAEL THE ELECTRONIC INDUSTRIES IN ISRAEL


ISRAEL ELECTRONICS & SOFTWARE INDUSTRIES SALES & EXPORT (M$)

ISRAEL ELECTRONICS & SOFTWARE INDUSTRIES SALES & EXPORT (M$)

EXPORT

DOMESTIC

2,79

51,

801

3,37

51,

935

3,97

02,

030

4,63

02,

210

5,48

02,

320

6,70

02,

280

8,05

02,

330

9,13

02,

400

13,0

002,

500

12,2

502,

500

10,7

402,

300

10,8

702,

300

13,4

002,

400

14,2

002,

500

16,0

002,

700

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

4,5965,310

6,000

6,840

7,800

9,980

10,380

11,530

14,75015,500

13,040 13,170

15,800

16,700

18,700

0

2000

4000

10,000

8000

6000

18,000

16,000

14,000

12,000

20,000


ISRAEL ELECTRONICS & SOFTWARE INDUSTRIES EMPLOYMENT AND MANPOWER STRUCTURE

ISRAEL ELECTRONICS & SOFTWARE INDUSTRIES EMPLOYMENT AND MANPOWER STRUCTURE

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

39,50042,700

45,00047,700

50,50053,400

56,20058,800

66,300

62,000

54,800

EMPLOYEES

0

000

000

000

000

000

000

000

10 ,

20 ,

30 ,

40 ,

50 ,

60 ,

70 ,

53,500

57,20059,500

62,000


ISRAEL ELECTRONICS & SOFTWARE INDUSTRIESEXPORTS BY INDUSTRY GROUP 2006 – 16,000 M$ISRAEL ELECTRONICS & SOFTWARE INDUSTRIESEXPORTS BY INDUSTRY GROUP 2006 – 16,000 M$

Civilian Comm. & Telecomm.

Components

IndustrialEquipment

22.9%

13.4%17.8%

13.4%

DefenseSystems

23.7%Software

8.8%

MedicalSystems


Fiberoptic & Photonic Systems SDH, SONET Access – XDSL ATM, Frame Relay IP Networks – Voice, Video, Data, Multimedia Routers, Load balancing 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

TELECOMMUNICATIONS EQUIPMENTTELECOMMUNICATIONS EQUIPMENT

22.9%


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

MAJOR MILITARY SYSTEMESMAJOR MILITARY SYSTEMES

13.4%


Computerized Production Equipment

Computerized Control Systems

Test Equipment

Training and Education Systems

Consumer Products

Security Equipment

MAJOR INDUSTRIAL EQUIPMENTMAJOR INDUSTRIAL EQUIPMENT

17.8%


Imaging and Diagnostic Equipment

Surgical and Treatment Equipment

Monitoring Systems

MAJOR MEDICAL EQUIPMENTMAJOR MEDICAL EQUIPMENT

8.8%


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

ELECTRONIC COMPONENTSELECTRONIC COMPONENTS

13.4%


INTERNET

MULTIMEDIA

SOFTWARE – PRODUCTS

SOFTWARE – TURNKEY PROJECTS

SOFTWARE - SUBCONTRACTING

SOFTWARESOFTWARE

23.7%


ISRAEL ELECTRONICS & SOFTWARE INDUSTRIESEXPORTS BY REGION 2006 – 16,000 M$ISRAEL ELECTRONICS & SOFTWARE INDUSTRIESEXPORTS BY REGION 2006 – 16,000 M$

35%

USA

38%

5%22%

EUROPE

ROW

ASIA


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)

HIGH-TECH CHARACTERISTICS IN ISRAELHIGH-TECH CHARACTERISTICS IN ISRAEL


Scientists & Engineers per 10,000 Scientists & Engineers per 10,000 pppp

0

20

40

60

80

100

120

140


R&D in Electronics and ICT as % of GDPR&D in Electronics and ICT as % of GDP

0

1

2

3

4

5

%% R&D per GDP% ICT R&D per GDP

Source: IVC Research Center, VenfureOne


Business Week Oct 11 2004

* Total annual new bachelor’s degree or higher

Israel R&D in first place with 4.7% of Israel R&D in first place with 4.7% of GDPGDP


Main Fields of Activities:Main Fields of Activities:

TelecommunicationsTelecommunications

Information TechnologiesInformation Technologies

Semiconductors for…Semiconductors for…

MedicalMedical

Conversion of Military Technologies to Civilian Products.Conversion of Military Technologies to Civilian Products.

START-UPSSTART-UPS

}}}} Mobileile, 3G, Broadband, Wi Fi, Internet,Data Comm, Security, Wi Max

Mobileile, 3G, Broadband, Wi Fi, Internet,Data Comm, Security, Wi Max

}}}} FablessFabless

}}}} New Applications to Reduce Health-Care CostsNew Applications to Reduce Health-Care Costs


Highlights in Israeli InnovationHighlights 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)


FOREIGN ELECTRONIC SUBSIDIARIESIN ISRAEL (PARTIAL LIST)

FOREIGN ELECTRONIC SUBSIDIARIESIN 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


Foreign Investments in Israel 2006Foreign Investments in Israel 2006

4,000$M

800$M

300$M

150$M

150$M

140$M

4,500$M

1,500$M


Foreign Investments in Israel 2006 Foreign Investments in Israel 2006 (cont.)(cont.)

90$M

76$M

Med Impuls50$M

40$M

12$M

90$M


Bill Gates, the Microsoft CEO, made his Bill Gates, the Microsoft CEO, made his first trek to Israel first trek to Israel

“Considering the density of Israeli start-ups and local successes, Israel is like a bit of Silicon Valley.


CEO Ed Zander visit to CEO Ed Zander visit to IsraelIsrael

-----Original Message----------Original Message-----From:From: Zander Ed-AEZ111 Zander Ed-AEZ111 Sent:Sent: Sunday, November 14, 2004 10:57 PM Sunday, November 14, 2004 10:57 PMTo:To: Yanay Elisha-BCMS54; Nottenburg Richard-arn021 Yanay Elisha-BCMS54; Nottenburg Richard-arn021Cc:Cc: Brown Greg-CGB025 Brown Greg-CGB025Subject:Subject: RE: Your visit to Israel RE: Your visit to Israel

Elisha- I had a great time. You and your team did an Elisha- I had a great time. You and your team did an outstanding job. I was continually impressed by their knowledge outstanding job. I was continually impressed by their knowledge of the business, opportunities and issues and great work ethic. of the business, opportunities and issues and great work ethic. Motorola has a jewelMotorola has a jewel in it it's Israeli operation thanks to you and in it it's Israeli operation thanks to you and your senior team. Hope to see you soon. Regards, edyour senior team. Hope to see you soon. Regards, ed

[email protected] [email protected] 847-576-3000 847-576-3000


Asked how come he chose Israel as his first investment outside America, Asked how come he chose Israel as his first investment outside America, Buffett's response was: "Some Americans came looking for oil, so they Buffett's response was: "Some Americans came looking for oil, so they

didn't stop in Israel.didn't stop in Israel. We came looking for brains, so we did stop in Israel."We came looking for brains, so we did stop in Israel."


ISRAEL ASSOCIATION OFELECTRONICS & SOFTWARE INDUSTRIESISRAEL ASSOCIATION OFELECTRONICS & SOFTWARE INDUSTRIES

Thank YouMore information at our Website:

www.iaesi.org.il

israel association of electronics & software industries

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