Israel, which is known worldwide for exporting high-end electronic chips, has seen a surge in chips exported to China in 2018.
The latest data from the Israel Export Association (Israel Export Institute) shows that Israel’s exports of Chinese semiconductors soared by 80% to US$2.6 billion in 2018 (approximately 174.5) 100 million yuan). Compared with the same period of last year, Israel's semiconductor products sold to the United States fell 20% to 860 million US dollars.
Amir Lama, the former Israeli Consul General of the Ministry of Foreign Affairs of Israel, and Amir Lantian (Lati), the former Israeli Consul General in Chengdu, revealed in an exclusive interview with the First Financial Report that current semiconductor exports accounted for 56% of Israel’s exports to China. Other technology products such as smart manufacturing and medical devices are growing at a large rate.
Jing Qian, a partner of the Rock and Roll Investment Fund, which has been engaged in China-Israel investment for a long time, told the First Financial Reporter that Israel Semiconductor industry and the Chinese market Complementary, the strength of the Israeli semiconductor industry lies in excellent design and development capabilities, interaction capabilities, integration capabilities and close links with the application area.
Highly complementary to the Chinese market
also from the Israel Export Association According to the data, in 2018, semiconductors accounted for 3.9 billion US dollars in total Israeli merchandise exports, which means that two-thirds of the semiconductor products produced by Israel were sold to China.
The association also said that semiconductor production testing equipment sold to China in 2018 also increased by 64% to 450 million US dollars (about 3.02 billion yuan). These devices are used to control and inspect the manufacturing processes of semiconductor factories and will help Chinese manufacturers process and manufacture semiconductor products locally.
Israel’s total merchandise exports to China (excluding diamonds) increased by 50% in 2018 to reach $4.7 billion. China has thus replaced the United Kingdom as Israel’s second-largest commodity export market, second only to the US$10.9 billion in exports. This new change is what the Israeli government is happy to see. Blue Sky Ming told the First Financial Reporter that the Israeli government has been working hard to deepen economic and trade exchanges with China for many years.
According to data released by World Semiconductor Trade Statistics (World&S;Semiconductor Trade&S;Statistics) in February this year, the global semiconductor market rose by 13.7% in 2018 to reach 468.8 billion. The size of the US dollar (about RMB 3.15 trillion).
It is estimated that the 2018 China semiconductor market has reached 1.46 trillion yuan, accounting for half of the global semiconductor market, and is estimated to be 2025 The proportion of the global market will further increase to 56%.
Jing Qian, who has been engaged in China-Israel investment for a long time, has visited many Israeli semiconductor companies and has an in-depth summary of why the Israeli semiconductor industry is strong. He told the First Financial reporter that first of all, Israel's semiconductor research and development has ecosystem support, not only industrial incubators, but also commercial counseling. Secondly, in the industrial chain, collaboration is not just at the domestic level, but global collaboration.
More importantly, Jing Qian told the First Financial Reporter that these semiconductor products are linked to communications, traffic command, industrial Internet of Things, telemedicine, etc., recently Many semiconductor products are related to consumer electronics. "Israel semiconductor development is not developed for the development of chips. It is to solve practical problems, and the trend is to link with the application side."
Developed semiconductor industry
Israel has spawned more than 160 semiconductors Enterprises, Intel, Qualcomm, Samsung, Broadcom, etc., almost all of the world's leading international semiconductor companies are camping in Israel.
Blue Sky Ming confirmed to the First Financial Reporter that Intel’s semiconductor products accounted for a large part of Israel’s rapidly growing semiconductor exports to China. According to an industry source, the media disclosed that the ratio is at least 80%.
Intel announced in 2017 that it will invest $5 billion to expand its capacity in the southern Israeli city of Kiryat Gat, which Intel claims The ability to produce the world's smallest and fastest chip.
In January 2019, the Israeli media reported that Intel plans to invest another $11 billion to build a new one in Kyle Yate. Chip production plant, specific details Intel and the Israeli government are still negotiating. In addition to expanding production capacity in Israel, Intel also acquired Israel's chip and technology company Mobileye, which focuses on cars, for $15.3 billion in March 2017.
currently,At least 21 million vehicles worldwide are equipped with unparalleled technology, and more than 80% of major automakers use incomparable chips to protect against impact. According to the survey, the incomparable anti-collision warning system avoided 70% of car accidents in Colombia and 84% in India.
After a large company acquires a small company, the acquired company usually integrates with the acquired company. However, in the case of Intel's acquisition, it is inconspicuous not only to retain the original name, but also to undertake all of Intel's previous driverless planning.
An Intel spokesperson said that the company exported $3.9 billion worth of products from Israel in 2018, up from $3.6 billion in 2017. At present, Intel has invested about 35 billion US dollars in Israel. It is the largest investor in Israel's technology sector. It has more than 10,000 employees in Israel and about 60% of its employees are engaged in semiconductor research and development. Many of the company's new technologies were developed in Israel.
Blue Sky Ming told the First Financial Reporter that in the international market, regardless of China or other countries,Both are interested in the Israeli semiconductor industry and are full of confidence. He specifically mentioned the case of Israel's famous semiconductor manufacturer Mellanox. Miles is known for producing data center chips and hardware components that support cloud services. Its founder and CEO, Waldman, told the media that his company has benefited from the rapid growth of its business in China.
NVIDIA officially announced in March that it will acquire Myrox for $6.9 billion in cash. This is the largest acquisition by NVIDIA in history, and market analysis says it will support the company's data center chip business, thereby reducing the company's reliance on the game business, which is expected to be completed by the end of 2019.
Since October 2018, Myrence has become a hot acquisition target for international technology giants including Microsoft and Intel. At the end of 2018, there was news that Microsoft hired Goldman Sachs to negotiate the acquisition of Mai Luosi. Intel made a bid for $6 billion, and eventually NVIDIA bid for $6.8 billion, winning among many competitors.
Blue Sky Ming said to the First Financial Reporter that there are many other outstanding semiconductor companies in Israel. He believes that the potential of Israeli semiconductor companies has not been fully stimulated.