"There is no chip in the world that does not pass under an Israeli machine from Applied Materials"
Four years after stepping down, Ofer Greenberger has returned as CEO of the Israeli division of Applied Materials, a company described by the New York Times as one of the "most important in the world." With revenue forecasts exceeding $10 billion, Greenberger highlights the pride of local production in Rehovot.
Thomas Friedman, the veteran New York Times commentator, once wrote that "Applied Materials is one of the most important companies in the world that you have never heard of." For many years, the stock of this company, which manufactures machines ensuring that chips for cloud servers, smartphones, and electric vehicles are defect-free, remained in the shadows. Ofer Greenberger (64), formerly the head of KLA, returned as CEO of Applied Materials Israel last year to transform the Israeli center into an independent business unit with significant technological depth.
50% Growth and Technological Breakthrough
At an investor conference, Applied CEO Gary Dickerson reported that the Israeli division reached an all-time revenue record and is expected to grow by more than 50% this year. While exact financial figures for the Israeli operations are not disclosed, industry estimates suggest it contributes billions of dollars to the company's $9 billion revenue recorded in the second quarter.
Founded in 1967, Applied Materials established its Israeli development center in 1990 and expanded its presence after acquiring Orbot and Opal in 1996. Today, the Israeli division employs 2,400 people. The company's stock has jumped 88% year-to-date, significantly outperforming the S&P 500 and Nasdaq indices.
The AI Rush
The Israeli PDC (inspection and metrology) division is a leader in electronic machines for defect inspection. Demand has surged due to the development of artificial intelligence and the shift toward multi-layered chips (HBM), where optical inspection is nearly impossible. Greenberger asserts: "There is no chip in the world that does not pass under an Israeli machine from Applied Materials."
Investments and Challenges
Despite laying off 100 employees late last year, the company is actively recruiting for hundreds of new positions and is investing $175 million in a new development center in Rehovot. Greenberger emphasizes that the Israeli division takes pride in its "blue-and-white" production, spending $500 million annually on local suppliers. He calls for a strategic government vision, noting that current tax incentive policies, which focus solely on the periphery, fail to account for the complexities of high-tech manufacturing that require proximity between developers and production floors in the center of the country.
