The Israel semiconductor industry complements the Chinese market well as it has advanced and application-oriented R&D capacity. Handout.

Israeli semiconductor exports to China climbed by 80% year on year in 2018 to 2.6 billion yuan, while its exports to the United States dropped 20% to US$860 million, data from the Israel Export Institute shows.

Amir Lati, the Deputy Director of North East Asia Department in the Israel Ministry of Foreign Affairs and the former Consul General of Israeli Consulate Generate in Chengdu, said in an interview with National Business Daily that the country’s semiconductor exports now contribute about 56% of total exports to China.

In addition, other technology products such as smart manufacturing and medical devices also reported notable increases in export to China.

The Israel semiconductor industry fits well into the Chinese market as it has advanced and application-oriented R&D capacity, a private equity investor with knowledge of the industry was quoted as saying.

Israel has more than 160 semiconductor companies, and all international semiconductors giants have branches in the country. Amir Lati disclosed that a majority of Israeli semiconductor export to China are products of Intel.

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