Israel’s tech sector could face disruptions after attacks

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Israel’s tech sector could face disruptions after attacks
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Short-term resources may shift if conflict widens, such as staff called up as military reservists.

A total of 500 multinational companies, spanning from Intel to IBM, Apple, Microsoft, Google, and Facebook, operate in Israel.

Israeli stock and bond prices slid and many businesses were closed on Sunday after gunmen from the Palestinian group Hamas rampaged through Israeli towns on Saturday and militants also fired thousands of rockets into Israel in a surprise attack.Israel retaliated with air strikes on Hamas targets in Gaza, and hundreds of people have died.

A spokesperson for chipmaker Intel Corp, Israel’s largest private employer and exporter, said on Sunday the company was “closely monitoring the situation in Israel and taking steps to safeguard and support our workers”. The spokesperson declined to say whether chip production has been affected by the situation.

Other tech giants, Meta Platforms, Alphabet and Apple did not respond to requests for comment. Microsoft declined to comment. In June, Prime Minister Benjamin Netanyahu said Intel was planning to spend US$25 billion on a new factory in the southern city of Kiryat Gat some 42km from Gaza. “They will probably increase the investment in AI,” Krosby said. “When a country is caught literally off guard the first thing they look at — beside the obvious problems with intelligence — is what was missed within the security systems.”

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