The Israel-Palestinian conflict’s economic toll impacts the electronics supply chain. There are about 500 research and development centers of multinational companies in Israel including from Intel to IBM, Apple, Sony, Microsoft, Google, and Facebook. Many employees, including top executives, are currently serving as reservists in the Israel Defence Forces (IDF), as the nation is currently suffering from Hamas terrorist attacks and has declared a state of war, a news site reports.

Advanced semiconductor fabs can be found in Israel such as Intel with factories in the southern city of Kiryat Gat, located just 12 miles from the Gaza border. According to EPS News, Prime Minister of Israel Benjamin Netanyahu has announced earlier this year that Intel would invest $25 billion in another factory set to open in 2027; the largest-ever international investment in Israel.

The blockade in Gaza imposed by Israel has disrupted operations along the supply chains as workers are prevented from crossing borders. This has resulted to shortages in personnels.

The disruptions of transport, including airline cancellations and sea route blockades, has also had an impact on exports. UPS said it had stopped flying to Israel and FedEx has largely reduced international connections to Israel.

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