Israel Germany | Business Guide | 2026

S emiconductors have become a strategic priority for Germany and the European Union, driven by supply chain vulnerabilities and the growing demand for advanced chips across automotive, industrial, and digital applications. Germany plays a central role in Europe’s semiconductor strategy, with significant investments in manufacturing, research, and ecosystem development. While Germany’s strength lies in advanced manufacturing, equipment, and industrial applications, the semiconductor value chain also depends heavily on design, verification, and specialized technologies. Bridging these domains is essential for building a resilient and competitive European ecosystem. Israel is a global center of excellence in semiconductor design, verification, and advanced chip technologies. Israeli companies and R&D centers are active in areas such as automotive chips, AI accelerators, sensors, and communication technologies. This expertise is closely aligned with the needs of Germany’s automotive and industrial sectors. For German manufacturers and research institutions, collaboration with Israeli semiconductor innovators provides access to advanced design capabilities and specialized Germany’s structured business environment creates demand for professional services, where Israeli expertise supports cross-border activity and sustainable partnerships O perating in highly regulated markets places growing importance on legal, financial, and professional advisory services. Germany offers a stable, transparent, and highly regulated business environment, which is a key advantage for international companies. At the same time, entering and operating in theGermanmarket requires adeepunderstanding of legal frameworks, tax structures, compliance obligations, and local business practices. For foreign companies, professional business services play a central role in ensuring smooth market entry and long-term success. Business Services – Supporting Market Entry and Long-Term Growth know-how. These partnerships support faster development cycles, improved performance, and greater flexibility across the value chain. As Europe invests in strengthening its semiconductor independence, cooperation between Germany and Israel contributes to a more integrated and competitive ecosystem. As Germany strengthens its semiconductor ecosystem, Israeli expertise in chip design and advanced technologies complements European manufacturing ambitions Semiconductors: Strategic Capabilities for Europe’s Digital Future 35