The American Connection

A very close relationship exists between American companies and Jewish American industrialists investing in Israel. There has been a U.S. presence in Israel for at least three decades. Two high-tech giants ” IBM and Motorola ” established local subsidiaries for sales and technical support in the 1960s. Over time the local plants evolved into full research and development facilities. Motorola took the process one step further and established one of its largest manufacturing facilities in Arad, near the Dead Sea. During the late 1970s Intel Corporation began operations in Israel. Today, Intel's activities range from R&D in Haifa to wafer manufacturing in Jerusalem (designated Fab 8), and a new plant under construction in Kiryat Gat (designated Fab 18).

The American government is a major factor in the Israeli economy. Roughly half of the Israeli government's external debt is owed to the U.S., which is its major source of economic and military aid. Three billion dollars have been given annually to Israel since the Yom Kippur War of 1973, and other substantial help and funds have been regularly provided to the country. These funds have been particularly useful for the building and developing of Israeli industry.