Intel’s Israeli exports soar 69% to $6.6 billion in 2019
Exports from Intel’s operations in Israel surged by more than 69% in 2019 to $6.6 billion, the US chipmaker said on Sunday.
The company, which directly employs some 13,700 workers across Israel, witnessed exports rise from $3.9b. in 2018 to an unprecedented high as it continues to deepen its activity in the local market.
Silicon Valley-based Intel has exported $60b. of goods since commencing operations in Israel in 1974, it said. During that time, it has invested some $20.5b. in establishing Israeli R&D and production facilities.
In December 2019, Intel announced the acquisition of Tel Aviv-based AI processor developer Habana Labs in a deal worth approximately $2b. The company’s largest local acquisition and record “exit” of an Israeli company to date was the purchase of Mobileye for $15.3b. in August 2017.
“This past year, Intel strengthened its technological leadership in the field of artificial intelligence with the launch of new products and the acquisition of Habana Labs,” Intel Israel general-manager Yaniv Garty said.
“The company also deepened its relationship with the entrepreneurial ecosystem and opened the Ignite start-up accelerator, which together with a series of investments by Intel Capital led Intel to strengthen its relationship with Israeli start-ups,” he said. “I am convinced that in 2020, too, Intel Israel will continue to represent a strong and significant force and continue to bring real value to Intel globally.”
Intel said its acquisition of Habana Labs, the company’s second largest in Israel, will strengthen its artificial-intelligence portfolio and accelerate its efforts in the fast-growing AI silicon market, expected to be worth more than $25b. by 2024.
The tech giant also opened its new development center in Petah Tikva in 2019, described as one of the world’s “smartest buildings” and home to 1,800 employees. Last year, Intel procured $1.8b. of goods and services from local companies, with the large majority (75%) sourced from small and medium enterprises.
In addition to the direct employment of 13,700 workers, a recent study published by the Technion-Israel Institute of Technology found that Intel Israel’s operations indirectly contribute to the employment of a further 53,000 individuals.
“Israel continues to be a major anchor in leading technological and life-changing developments,” said Karin Eibschitz Segal, head of Intel’s R&D operations in Israel. The company’s local development teams were behind a series of new products to enter the market in 2019, including the 10th-generation Intel Core processor and i9 desktop processor for gaming.
“After launching Intel’s smart development center in Petah Tikva, I am certain that the development centers will only grow,” she said. “The creativity and commitment of employees here brought us again to new heights, which I am sure we will continue to break in the coming year.”
Since acquiring Jerusalem-based Mobileye in 2017, the collision-avoidance subsidiary has continued to grow in the capital. A new, expansive global development center is currently being constructed in the city and is expected to house 2,700 employees once complete. The center is scheduled to open in October 2022.