US co Teradyne seeking Israeli chip designers, offering free testing

The objective: To convince companies needing product testing services to become customers.

“Globes” has learned that Teradyne of the US will place a testing machine for chip design companies in Israel. The machine, which Teradyne bought for $2-3 million, will be set up in Ramat Gan within the week and placed at the companies’ service for free. Teradyne representatives in Israel said that the intention is to use the machine to attract new customers.

Israel has the second largest number of fabless companies (chip design companies who outsource manufacturing), after the US. Fabless companies are supposed to test their products themselves. The testing process requires expensive equipment, and is carried out by subcontractors. There are several testing machines now in Israel.

Teradyne is the world’s largest supplier of automatic testing machinery for the electronic and communications industries. Its 1999 sales totaled $1.8 billion. The Boston-based company is represented in Israel by Ramat Gan-based E.M. Engineering (YGR), which has a staff of 20.

Published by Israel's Business Arena on 4 January 2001

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