How could the 'Nvidia' crisis spread to the Israeli economy?

An analysis of the impact of the American company Nvidia's crisis on the Israeli economy, given the weight of the high-tech sector, which constitutes 18%-20% of GDP and 50%-58% of exports. The article reviews the beginning of Nvidia's activity in Israel and its acquisition of Mellanox, and questions the repercussions of the crisis on investments, employment, and tax revenues.

The analytical article on the Arab48 website discusses how the crisis of the American company Nvidia could spread to the Israeli economy, given the significant weight of the high-tech sector in Israel. The article points out that this sector constitutes 18%-20% of GDP, 50%-58% of total Israeli exports, and was responsible for about 40% of economic growth in the years before the war on Gaza. It also mentions that workers in the sector make up about 11.3% of total employment (approximately 400,000 workers) and pay about 36% of total income tax on labor. The article reviews the beginning of Nvidia's activity in Israel, where it opened its first office in 2016 and an artificial intelligence research center in 2018, then acquired the Israeli company Mellanox in a deal worth about seven billion dollars completed in April 2020. The article questions whether the crisis facing Nvidia will affect the volume of its activity and investments in Israel, and what repercussions this may have on employment, output, and state tax revenues.