Why Israeli Tech Is Thriving Despite Layoffs, AI, Conflict
“The immunity of the Israeli high tech stems from its ability to sell most of its product to the US,” Dr. Sergei Sumkin told The Media Line. “The demands of companies like Apple, Google and others are almost endless."Israel’s high-tech industry continues to grow, demonstrating resilience in the face of shifting trends, technological advances and political upheaval.The sector, a primary engine of Israel’s economic growth, continues to perform strongly despite major challenges.Alongside geopolitical instability, the increased adoption of artificial intelligence…
Israel's high-tech industry is demonstrating significant resilience and growth despite geopolitical instability, the strengthening shekel, and the rise of AI. In 2025, Israeli high-tech output increased by 8.2%, with a 30% rise in capital raising and record export shares. Employment in tech positions surpassed 600,000 in Q1 2026, a 7% growth that marks a departure from a three-year slowdown. Dr. Sergei Sumkin noted, "It is very encouraging to see an increase in employment and exports," particularly given the ongoing conflict. Rotem Meitiv-Klein of Experis Israel stated, "This is a sign of recovery and resilience and is a higher figure than what we see in other countries." Even with layoffs, companies are simultaneously hiring for new roles, indicating adaptation rather than contraction. The industry's strength is attributed to its ability to sell most products to the US market, where demand from major tech companies is robust.
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