Applied Materials Inc. (Nasdaq:AMAT) will expand its activities in Israel, and will hire hundreds of employees in 2006, Applied Materials president and CEO Mike Splinter told Acting Prime Minister, Minister of Finance and Minister of Industry, Trade and Labor Ehud Olmert at a meeting today.
Olmert said, “The semiconductor industry is one of the key axes of the global economy, and Applied Materials is one of the greatest contributors to the development of this industry.”
At the meeting, Splinter outlined the company’s plan, which is based on the success of the company’s products developed in Israel and the large global demand for these products. Olmert expressed satisfaction at Applied Materials’ investment in Israel, and at the achievements of the company’s Israeli branch.
Olmert proposed to Splinter a joint R&D agreement, similar to agreements with Oracle (Nasdaq:ORCL), Microsoft (Nasdaq:MSFT) and other companies. Splinter responded favorably, and the parties agreed to pursue an agreement.
Olmert said, “Global competition for every investment is intensifying, and Israel mainly competes in the high-tech segment, where it focuses on human capital.”
Investment Promotion Center director Rachel Roy said that, as part of this effort, meetings were held with foreign investors operating in Israel to examine possibilities for expanding activities here.
60% of foreign investment in Western Europe is follow-on investment by customers. Roy said this rate was the Investment Promotion Center’s goal, and that Applied Materials was an example of a foreign investor that increased its investment in Israel almost every year.
Applied Materials Israel operates as an independent business unit, with over 1,000 employees, and hundreds of millions of dollars in exports a year.
Published by Globes [online], Israel business news - www.globes.co.il - on January 30, 2006