Vishay world president Felix Zandman said today that the company is considering setting up an additional plant in Israel, at an investment of $100 million. Zandman added that a final decision would soon be taken on the matter, based on purely economical, and not political considerations. The plant under consideration is for the manufacture of semiconductors, a field in which Vishay is not currently active in Israel.
Zandman said that Vishay traditionally transfers a certain manufacturing portion in each new field the company enters. Vishay recently entered the field of semiconductors, after it purchased a German company which manufactures active capacitors, for $500 million.
Two years ago, Vishay considered setting up a new plant in Ofakim, but changed its mind. Zandman said "We cancelled the setting up of the plant, not at our initiative, but due to claims by the Investment Center that they did not have sufficient funds, and continuously requested we postpone the date for setting up the plant."
According to Zandman, "It is ridiculous to expect investors contemplating an investment of $100 million, to set up plants in Israel, when the grant given today is 20% of the investment amount." Zandman, and Vishay Israel president Avraham Inbar refused to respond to the question of whether the setting up of the plant was dependent upon the size of the grant given the company. Regarding the possibility of the company raising funds on the Tel Aviv stock exchange, Zandman said "We do not require Israeli money. Keep if for yourselves." Vishay trades on the New York stock exchange.
Vishay is today engaged in Israel in the manufacture of passive components for the electronic industry. The company has four plants in Israel, in Migdal Ha’emek, Holon, Beer Sheva and Dimona, and has 3,300 employees. Inbar says that in ’97, the number of employees grew by 450, and a similar number is expected to join in ’98.
Inbar further stated that in ’97 sales of the plants in Israel amounted to $270 million, of which 97% was for export, and that in ’98 sales are expected to amount to $335 million.
Published by Israel's Business Arena February 24, 1998