Microsoft Exec: Israel's Tech Sector Could Suffer from War with Hamas

Israeli military vehicles move near Israel's border with the Gaza Strip, on November 1, 2023 in southern Israel, amid ongoing battles between Israel and the Palestinian Hamas movement. (Photo by Jack Guez / AFP)
Israeli military vehicles move near Israel's border with the Gaza Strip, on November 1, 2023 in southern Israel, amid ongoing battles between Israel and the Palestinian Hamas movement. (Photo by Jack Guez / AFP)
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Microsoft Exec: Israel's Tech Sector Could Suffer from War with Hamas

Israeli military vehicles move near Israel's border with the Gaza Strip, on November 1, 2023 in southern Israel, amid ongoing battles between Israel and the Palestinian Hamas movement. (Photo by Jack Guez / AFP)
Israeli military vehicles move near Israel's border with the Gaza Strip, on November 1, 2023 in southern Israel, amid ongoing battles between Israel and the Palestinian Hamas movement. (Photo by Jack Guez / AFP)

A senior Microsoft Israel official expressed concern for the future of Israel's high tech sector due to the country's war with Hamas, warning multinational companies may close research and development activities, Reuters reported Wednesday.
Tomer Simon, chief scientist at Microsoft Israel's R&D Center, said he expressed his concerns in a letter to Tzachi Hanegbi, Israel's head of the National Security Council, but never received a reply.
As a result, Simon published his letter in the Calcalist financial daily on Wednesday, saying it was his personal opinion and not on behalf of Microsoft, one of hundreds of multinationals operating in Israel.
"The country must create a positive horizon so that multinational companies continue to grow," Simon said, noting that for every tech job, there were five more created that drive Israel's economy.
"There is a great danger here. Israel cannot return to just producing oranges. Without high-tech we will return to being a third world economy."
The prime minister's office did not immediately comment to Reuters.
Simon, who also acknowledged the human cost of the war, called on leaders to send a clear message to international partners and the global business community that Israel was committed to a prosperous and stable future.
Hundreds of thousands of army reservists have been called up, leaving a gaping hole in manpower and disrupting supply chains from seaports to supermarkets.
"The war has created a substantial vacuum in the workforce of the high-tech sector. This scenario is especially noticeable in multinational corporations located in Israel, where the percentage of employees recruited to the reserves is significantly higher than the national average," Simon said.
Simon did not cite figures but the government has estimated as much as 15% of tech workers were called to military service.
He said their absence harms both current projects and "sends a worrying message to their global headquarters about the reliability and stability of their Israeli operations, and of Israel in general".
Simon also pointed to the preceding 10 months of political turmoil amid a judicial overhaul plan that harmed foreign investments and led to a few R&D closures.
He cautioned that "multinational companies may freeze or reduce their investments after the conflict, and even to close their R&D activities here" which would carry harmful results for Israel's economy and the "future of innovation, weaken our global position and undermine our internal stability even more".



Taiwan May Exports Hit Record on AI Demand and Ahead of US Tariffs

A man rides a motobike on the street with wind turbines in the background, in Changhua, Taiwan May 9, 2025. REUTERS/Ann Wang
A man rides a motobike on the street with wind turbines in the background, in Changhua, Taiwan May 9, 2025. REUTERS/Ann Wang
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Taiwan May Exports Hit Record on AI Demand and Ahead of US Tariffs

A man rides a motobike on the street with wind turbines in the background, in Changhua, Taiwan May 9, 2025. REUTERS/Ann Wang
A man rides a motobike on the street with wind turbines in the background, in Changhua, Taiwan May 9, 2025. REUTERS/Ann Wang

Taiwan's exports surged to a record in May on booming demand for artificial intelligence and as customers placed orders ahead of US tariffs which could take effect next month after a suspension period expires.

Exports increased 38.6% from the same month a year ago - the fastest pace in almost 15 years - to $51.74 billion, a record high and the first time the value of exports has exceeded $50 billion, the finance ministry said on Monday.

The expansion, the 19th consecutive monthly gain, was higher than the 25% expected by economists in a Reuters poll and surpassed April's 29.9% rise.

Taiwan companies such as TSMC , the world's largest contract chipmaker, are major suppliers to Apple , Nvidia and other tech giants.

May exports benefited from continued strong AI demand and customers bringing forward orders to hedge against the possibility of increased U.S. tariffs, the ministry said in a statement.

US President Donald Trump planned a 32% import levy on goods from Taiwan under his global tariff regime, until he announced a 90-day pause in April to allow for trade negotiations.

While AI and other new technologies should continue to support Taiwan's exports, the uncertainty surrounding the US tariffs and geopolitical risks could undermine the global economic outlook, the ministry said.

For June, the ministry expects exports to rise between 15% and 25% year-on-year.

In May, Taiwan's exports to the United States soared 87.4% year-on-year to $15.52 billion, a record in terms of growth and value, versus a 29.5% surge in the prior month.

Exports to China, Taiwan's biggest trading partner, climbed 16.6%, after rising 22.3% in April.

Taiwan's total exports of electronic components gained 28.4% in May on the year to $17.2 billion, with semiconductor exports up 30.1%.

Imports rose 25% to $39.13 billion, lower than economists' forecasts of 30.2%.