The Phoenix Builds Massive 7 Billion Shekel Position in Israeli Chip Sector
The Phoenix has built a massive 7 billion shekel position in Israel's semiconductor sector, adding 3 billion shekels to stakes in Nova and Camtek.
The Phoenix has built a massive 7 billion shekel position in the Israeli semiconductor equipment sector, marking one of the most prominent investment moves by an institutional body in local technology. In less than two and a half months, the insurance and financial giant expanded its position by approximately 3 billion shekels, concentrating its holdings in Nova and Camtek, the two leading semiconductor equipment firms in the domestic market.
The latest move targeted Nova, a developer and manufacturer of process control and measurement systems for the chip industry. According to Nova's report as of September 17, The Phoenix became a substantial shareholder after acquiring 1.89 million shares through its provident funds, valued at roughly 2 billion shekels. Additionally, Phoenix mutual funds held over 700,000 shares, while company nostro accounts and executive insurance funds held smaller stakes. Overall, The Phoenix holds 2.75 million shares in Nova, with a market value of 3.3 billion shekels, making it the second-largest institutional shareholder behind Harel, with an 8.6% stake.
This follows a significant expansion into Camtek. As of August, Phoenix provident funds held roughly 1.47 million shares in Camtek, valued at 653 million shekels, bringing total group exposure to about 1 billion shekels. Camtek develops automated inspection and measurement systems used for defect detection and quality control. These positions add to an existing 3.7 billion shekel holding in Tower Semiconductor, bringing The Phoenix's total exposure to the sector to nearly 7 billion shekels.
Behind the strategy is Hagai Schreiber, Chief Investment Officer at The Phoenix. The targeted investments reflect a focused bet on the suppliers supporting semiconductor manufacturers amid the global artificial intelligence boom. While market enthusiasm for AI has largely centered on Nvidia and cloud giants, a massive share of capital is currently flowing into the factories and specialized equipment required to produce complex microchips.
The investment aligns with expectations of continued growth in the semiconductor market. Bank of America recently projected that the global chip market could expand from $1.7 trillion in 2026 to $3.2 trillion by 2030, driven by investments in data centers, memory, and manufacturing equipment. However, following sharp rallies across the sector, current valuations already reflect much of this optimism.
This massive allocation represents a distinct shift from The Phoenix's recent investment patterns, which heavily favored long-term infrastructure and energy assets such as power plants and solar portfolios. While energy assets provide predictable, long-term cash flows, Nova and Camtek are tied to the cyclical investment waves of chip manufacturers. Consequently, while the 3 billion shekel push could significantly boost mid-term returns for Phoenix policyholders and pensioners, it also exposes the firm to higher volatility in the event of a market correction.
