1. Tapping the Opportunity in the Global High-Tech Markets
Dan Vilenski
Former Chairman, Applied Materials Israel
30 November 2018

2. The Vilenski Business card
                                                    
The Vilenski Business card
                         
BIRD Israel - U.S. Binational
Industrial Research and Development Foundation
1997
1969
1986
2004
30 November 2018

3. Jaffa Oranges vs. Software & Life Sciences
30 November 2018

4. Israeli High-Tech Environment
Socialism is moving out, entrepreneurial spirit, similar to the “good old days” in Silicon Valley is taking it’s place
No change
Young entrepreneurs with “chutzpah” and innovative ideas motivated by some of the latest successes of many Hi-Tech Israeli - start-ups
New generation of successful managers, trained in the USA are moving back to Israel
The trend is accelerated due to better job alternatives in Israel
30 November 2018

5. Israeli High-Tech Environment (cont.)
Lack of experienced scientists and engineers
Large number of experienced professionals are available
Manufacturing rising to international standards ISO 9000, TQM etc.
No change
Free trade agreements with the European Community and the USA
No change with some risk of boycott from Europe
Business and cultural links with international markets
30 November 2018

6. Israeli High-Tech Environment (cont.)
Military technology developed without economic consideration ready and available for commercialization
No change
Large number of qualified University graduates
Regional instability without a solution in sight
No change -Tech: Was I
s Being Changed
Poor cooperation between the Academy and the Industry
Budget cuts have forced the universities to seek outside funds
30 November 2018

7. Israeli High-Tech Environment (cont.)
High Valuations of Israeli companies, start ups as well as mature companies
The current business environment offers attractive valuations for quality companies
Israel will be the center of the “New Middle East”
The question is when?
30 November 2018

8. Foreign Subsidiaries in Israel (partial list)
Intel
Microsoft
IBM
Sun Micro systems CA
EDS
BMC
Cisco
3 Com HP
Texas Instruments
National S.C
Alcatel
Philips
Ericsson
Nokia
Foreign Subsidiaries in Israel (partial list)
ADC
Qualcomm
Applied Materials
KLA - Tencor
Kulicke & Soffa
Bio-Rad
BAE Systems Ind.
Astronautics
Sigma
Invitrogen
J&J
Merck
Deutsche Telekom
British Telecom
Daimler Chrysler
Marvel
ST Microelectronics
Infineon
Analog Devices
Vishay
AVX (Kyocera)
General Electric
Philips Medical
Medtronics
Boston Scientific
Motorola
Lucent Technologies
Avaya
Nortel
Siemens
30 November 2018

9. Foreign Investments in Israel 2006
                                                                  
$300M
$150M
$150M
$107M
30 November 2018

10. A Success Story Applied Materials
Team work between Israeli and US teams enabled:
Identified correct market needs - products
Successful integration of newly acquired companies’
Successful management of transition into a new company culture
Successful integration of financial and information systems
30 November 2018

11. A Success Story Applied Materials
Product
People
Infrastructure
People
30 November 2018

12. Success Story Applied Materials
Wants to enter
the metrology
& inspection markets
The largest supplier of
products and services to the
global semiconductor industry
OPAL
ORBOT
Inspection Tools
Metrology
Tools
30 November 2018

13. Success Story Applied Materials
The largest supplier of
products and services to the
global semiconductor industry
ISRAEL
30 November 2018

14. The Challenges Detecting 30nm defects on a wafer is like…
300mm Wafer
Golf ball
The state of Israel
White blood cell
Soccer field
30nm defects
30 November 2018

15. Applied Materials PDC Portfolio
Wafer
Mask
Inspection
Review
Metrology
ComPLUS 3T
UVision
Elite
SEMVision Family
G3 HP G3
G3 FIB
VeritySEM 2
Aera
RETicleSEM
30 November 2018

16. Strategic Partnership
based on the
Academia “Golden Egg”
Complement Product Line
New Technology
Potential Increase of
Market Share
Shorter Time to Market
Risk Reduction
Financial Resources
1+1>2
Bio-Rad
US company
1.3 $ Billion sales
ProteOptics
Israeli start-up
Originated at the Technion
30 November 2018

17. The Product “Golden Nugget”
30 November 2018

18. The Future: Sustainable Development
Renewable Energy
Alternative energy
Storage of energy
Saving of conventional energy
Water
Environment
Biotechnology
Nanotechnology
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19.
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20.
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21. Summary Main points for the unique business climate opportunity
Manpower - availability of quality professionals
Creativity - plenty of word-class innovations from individuals and universities
Valuation – companies with good intellectual property and/or product are having difficulties raising money and are therefore willing to raise funds at lower valuation rates
Financial – governmental financial support for capital and R&D investments are available to “compensate” for the risks
30 November 2018

22. The opportunities are great,
Conclusions
There are risks in starting an operation in Israel
The geographic distance is not convenient
The regional instability is a problem
BUT
The opportunities are great,
it is worthwhile to try
30 November 2018