Nvidia to Establish R&D Center in Northern Israel Amid High-Tech Sector Recovery
The Israeli high-tech sector is showing signs of recovery post-war, bolstered by Nvidia's announcement of a new R&D center. The sector, which constitutes 17% of Israel's GDP, faced challenges due to military mobilization and a brain drain of 8,300 employees between October 2023 and July 2024. Despite a stagnation in production in 2024, private funding rose to $15.6 billion in 2025, with a notable increase in defense innovation startups, nearly doubling to 312. Technologies related to defense are now highly sought after globally.
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The Israeli high-tech sector is rebounding following the war with Hamas, highlighted by Nvidia's plan to build a large R&D center in Kiryat Tivon. This sector accounts for 17% of GDP and faced significant personnel reductions due to military mobilizations.
Between October 2023 and July 2024, 8,300 tech employees left Israel, representing 2.1% of the workforce. Despite a stagnation in production in 2024, private investments increased to $15.6 billion in 2025. Defense-related innovation surged, with startups in this field nearly doubling during 2024-2025, reflecting a global demand for new technologies due to ongoing geopolitical tensions.
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