War in Israel to Impact Electronics Supply Chain

War is first, and foremost, about human tragedy and the conflict between Israel and Hamas — identified by the U.S. and other nations as a terrorist organization — has  already claimed thousands of lives. There is likewise an economic toll. There are now 500 multinationals operating in Israel – mainly research and development centers after buying Israeli start-ups – from Intel to IBM, Apple, Sony, Microsoft, Google, and Facebook.

In 2015, Israel spent 4.3 percent of its gross domestic product (GDP) on civil research and development, the highest ratio in the world. Israel is also home to many electronics and semiconductor companies and facilities.

As the country is now under the terrorist attacks of Hamas and has declared a state of war, many workers, and even top-level executives, are currently serving as reservists in the Israel Defense Forces (IDF).

Israel has already said it would call up an unprecedented 300,000 reservists, many of which could come from U.S.-based tech operations. Mobilizing reservists from tech companies, including Intel, affects their regular operations and production.


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