New Delhi: The ongoing conflict between Israel and Hamas, which has escalated into a full-scale war, has not only caused death and destruction in the region but also threatened the global economy. Israel, which is known as the startup nation, has attracted huge investments from tech companies from various countries, especially India and the US. However, these companies may now face losses and disruptions due to the war.
The war, which started on May 10, 2023, has resulted in hundreds of casualties and thousands of injuries on both sides. Israel has launched airstrikes and ground operations against Hamas targets in Gaza, while Hamas has fired rockets at Israeli cities. The international community has called for an immediate ceasefire, but the efforts have not yielded any positive outcome so far.
The war has also affected the normal functioning of the Israeli economy, which relies heavily on its high-tech sector. Israel has called up its reservists to join the military operations, which include teachers, technical workers, doctors, nurses, startup entrepreneurs, and those working in the tourism sector. These people are unable to return to their regular work, which may hamper the production and innovation of different companies.
Many Indian and American tech companies have invested in Israel, either by acquiring Israeli startups or by setting up their own offices and research centers. These companies may now face difficulties in running their operations smoothly and safely in Israel. They may also lose their investments if the war continues for a long time or if the situation worsens.
Some of the Indian tech companies that have invested in Israel are:
- Wipro: The IT company acquired an Israeli aircraft spare parts manufacturer HR in 2016. The deal was worth $150 million. Wipro may now face challenges in managing its business in Israel due to the war.
- TCS: The IT giant has around 1,100 employees in Israel. The company started its operations there in 2005. TCS provides services to various sectors such as banking, telecom, defense, and aerospace. TCS may now have to deal with security and logistical issues due to the war.
- Infosys: The IT major has also made a significant investment in Israel. The company works in the field of industrial research there. Infosys has partnered with several Israeli universities and research institutes to develop cutting-edge technologies. Infosys may now face disruptions in its research activities due to the war.
- HCL Tech: The IT company has two offices in Israel. This is a strategic investment for the company. HCL Tech offers solutions to various industries such as healthcare, automotive, telecom, and aerospace. HCL Tech may now face operational difficulties due to the war.
Some of the American tech companies that have invested in Israel are:
- Microsoft: The software giant has a strong presence in Israel. The company has acquired several Israeli startups such as Cloudyn, Hexadite, Adallom, and N-trig. Microsoft also has its own research and development center in Israel. Microsoft may now face losses and delays due to the war.
- Alphabet (Google): The internet giant has also invested heavily in Israel. The company has acquired several Israeli startups such as Waze, SlickLogin, Velostrata, and Wix. Google also has its own campus and research center in Israel. Google may now face challenges in maintaining its services and innovation due to the war.
- Apple: The smartphone giant has also made a big investment in Israel. The company has acquired several Israeli startups such as Anobit, PrimeSense, LinX, and RealFace. Apple also has its own research and development center in Israel. Apple may now face difficulties in developing its products and technologies due to the war.
- Oracle: The software giant has also invested in Israel. The company has acquired several Israeli startups such as Ravello Systems, Crosswise, and Datalogix. Oracle also has its own office and research center in Israel. Oracle may now face problems in running its business and research due to the war.
- Intel: The chip giant has also invested massively in Israel. The company has acquired several Israeli startups such as Mobileye, Habana Labs, and Moovit. Intel also has its own manufacturing plants and research centers in Israel. Intel may now face disruptions in its production and innovation due to the war.
The Indian and American tech companies are not the only ones that have invested in Israel. Many other tech companies from countries such as China, Japan, South Korea, France, Germany and Canada have also invested in Israel. These companies may also face similar risks due to the war.
The war between Israel and Hamas is not only a humanitarian crisis, but also an economic crisis. It may affect the global economy by causing losses and damages to various tech companies that have invested in Israel. It may also affect the innovation and development of new technologies that may benefit the world. Therefore, it is imperative that the war is stopped as soon as possible and peace is restored in the region.