Semiconductors - Israel

Israel

Revenue in the Semiconductors market is projected to reach US$1,034.00m in 2024.
Integrated Circuits dominates the market with a projected market volume of US$611.20m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.52%, resulting in a market volume of US$1,629.00m by 2029.
In global comparison, most revenue will be generated in China (US$177.80bn in 2024).

Definition:

Semiconductors are the crucial building blocks of all the electronics we see daily. The semiconductor industry comprises companies that design, fabricate, assemble, test, and supply semiconductors that are suitable for various applications. The semiconductor market represents the market size of the semiconductors used in various electronics applications.

Structure:

The semiconductor market is structured into four different markets based on the functionality of the semiconductors as follows:

The Discrete Semiconductors market represents the semiconductors that have a basic function and are mostly built using a single semiconductor device. These are further used in an application in conjunction with other semiconductors.
The Integrated Circuits market is the largest market and represents the semiconductors that have specific functionality. They generally consist of several basic semiconductor devices. This market is further divided into Analog Integrated Circuits, Logic Integrated Circuits, Memory Integrated Circuits, and Micro Integrated Circuits.
The Optoelectronics market represents the semiconductors that have functionality related to light.
The last market Sensors & Actuators represents the semiconductors that sense real-world factors and those that actuate other devices.

Additional Information:

The semiconductor market comprises revenue, revenue change, and key player market shares as the key performance indicators. Only the revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included and the revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B), and governments (B2G). Further definitions of the markets can be found on respective pages.

Key players in this market include Samsung, Intel, SK Hynix, Qualcomm, Micron, etc.,

For more information on the displayed data, use the info button right next to the boxes.

Market

Region

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Analyst Opinion

The Semiconductors market in Israel is experiencing significant growth and development, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Israel, customers have a strong preference for advanced and innovative semiconductor technologies. They are highly focused on products that offer high performance, energy efficiency, and reliability. This demand is driven by the country's thriving technology sector, which includes a large number of startups and research institutions. Israeli customers also value semiconductor products that are compact and lightweight, making them suitable for use in portable devices such as smartphones and tablets.

Trends in the market: One of the key trends in the Israeli semiconductor market is the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies. These technologies are being integrated into various applications, including autonomous vehicles, smart home devices, and industrial automation. As a result, there is a growing demand for semiconductors that can support the processing power required for AI and ML algorithms. Another trend in the market is the development of semiconductor technologies for the Internet of Things (IoT). Israel is witnessing a rapid growth in IoT devices, ranging from smart wearables to connected home appliances. To meet the requirements of these devices, semiconductor manufacturers are focusing on developing low-power and high-performance chips that can enable seamless connectivity and data processing.

Local special circumstances: Israel has a strong and well-established semiconductor industry, with several major companies and research institutions operating in the country. The government has also played a significant role in promoting the growth of the semiconductor sector through various initiatives and incentives. This has attracted both domestic and international investors, leading to the establishment of semiconductor manufacturing facilities and research centers in Israel. Furthermore, Israel has a highly skilled workforce in the field of semiconductor technology. The country is known for its strong education system and research capabilities, which have contributed to the development of cutting-edge semiconductor technologies. This availability of skilled talent has further fueled the growth of the semiconductor market in Israel.

Underlying macroeconomic factors: The Israeli semiconductor market is also influenced by underlying macroeconomic factors. The country has a stable and growing economy, which provides a conducive environment for semiconductor companies to thrive. Additionally, Israel has a strong network of trade agreements with various countries, facilitating the export of semiconductor products to global markets. Moreover, the government has implemented favorable policies to attract foreign investments and promote innovation in the semiconductor sector. This includes tax incentives, grants, and funding programs for research and development activities. These initiatives have helped create a favorable business environment for semiconductor companies in Israel. In conclusion, the Semiconductors market in Israel is experiencing significant growth and development due to customer preferences for advanced and innovative technologies, the adoption of AI and IoT, local special circumstances such as a strong semiconductor industry and skilled workforce, and underlying macroeconomic factors such as a stable economy and government support. These factors have contributed to the success of the semiconductor market in Israel and are expected to drive further growth in the future.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the money spent at the manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use the annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.