Startup Nation Central’s 2025 report highlights Israel’s “two-engine” model, combining agile startups and multinational R&D hubs with VC investment ratios three times the national average
Israel’s semiconductor ecosystem has emerged as a global hub for chip innovation, according to Israel’s Semiconductor Landscape 2025, a new report and interactive map released today by Startup Nation Central, the nonprofit organization promoting Israel’s innovation ecosystem worldwide.
The report highlights what it calls the “Two-Engine Paradox” driving Israel’s chip sector: a combination of agile startups and multinational R&D centers that together design core technologies powering AI, cloud infrastructure, and advanced computing systems worldwide.
Israeli teams contribute to central technologies such as Intel’s Gaudi AI processors, Amazon’s Graviton CPUs and Nitro networking systems, and Nvidia’s data center interconnects.