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History of Samsung's investments in Israel
Executive Summary
Samsung’s footprint in Israel combines long‑standing corporate R&D and acquisitions dating to the late 1990s and 2007 with a separate venture‑investment arm, Samsung Next, that invested heavily in Israeli startups for roughly a decade but announced a withdrawal of its Tel Aviv operations in April 2024. The record shows ongoing Samsung R&D and foundry engagement in Israel alongside a recent contraction of venture activity tied to macroeconomic and war‑related investor concerns [1] [2] [3] [4].
1. Extracting the headline claims — What people are saying that needs reconciling
The raw claims across sources break into three clear assertions: first, Samsung established and runs substantive R&D operations in Israel, including camera‑sensor and semiconductor work dating back to acquisitions and SRIL activity in the 1990s and 2000s [2] [1]. Second, Samsung Next, the corporate venture/innovation arm, invested in roughly 70 Israeli startups over nearly a decade but shut down its Tel Aviv office in April 2024 and moved regional activity elsewhere, a withdrawal characterized as significant for local startup funding [3] [5]. Third, there is ongoing corporate engagement in semiconductor events and collaborations such as ChipEx 2023, indicating continuing technical presence distinct from venture operations [4]. These claims set up a bifurcated picture of operational continuity and selective retreat.
2. Long‑term R&D roots — How Samsung built its Israel presence
Samsung’s Israeli R&D dates to the late 1990s and accelerated with the purchase of Transchip Israel in 2007 that created a major camera sensor and software hub in Herzliya and a semiconductor R&D site in Ramat Gan; by 2012 these units had produced dozens of patents and employed roughly 200 engineers focused on camera and chip work [2]. Samsung Research Israel (SRIL) is documented as an institutional R&D unit with a multi‑decade mandate to develop advanced technologies and to engage with local academic and startup ecosystems [1]. This enduring technical footprint is demonstrably separate from Samsung’s venture‑investment arm, signaling that acquisition plus internal R&D commitments created a structural presence that predates and outlived more recent venture decisions [2] [1].
3. The Samsung Next exit — What changed in 2024 and why it matters
In April 2024 Samsung Next announced the closure of its Tel Aviv operations after roughly ten years of investing in some 70 Israeli companies; public explanations pointed to the economic fallout from the Gaza war and resultant market contraction in Israel as factors leading to the office closure and relocation of responsibilities to other Samsung offices [3] [5]. The withdrawal reduced a prominent source of venture capital, mentoring and corporate partnership for Israeli startups, and contemporaneous reporting connects the move to broader declines in funding flows to Israeli tech in 2023–2024, linking geopolitical conflict, investor risk appetite and corporate risk management decisions [6] [3]. The move was widely covered as a discrete strategic retreat by the innovation arm rather than a full corporate exit.
4. Continued commercial and technical engagement — Evidence of ongoing ties
Despite Samsung Next’s pullback, Samsung’s commercial and technical engagement in Israel continued after 2024, with Samsung Foundry participating in ChipEx 2023 and other venture and R&D signals through SRIL and local partnerships documented as ongoing as of 2025 reporting [4] [7]. Participation in industry events and the persistence of R&D centers show Samsung retains operational and strategic interests in Israeli semiconductor and imaging technologies, which are integral to Samsung’s global device and foundry strategies. These activities indicate that corporate engineering, foundry collaboration and product development ties remain even when venture vehicles change posture.
5. Scale, sectors, and the picture investors should draw
Samsung’s investments in Israel historically span direct acquisitions, R&D staffing and corporate venture into areas including computer vision, sensors, semiconductors, cybersecurity and digital health; reported counts vary by scope — roughly 18 direct investments noted in 2016, roughly 70 portfolio companies via Samsung Next over a decade, and dozens of patents and hundreds of R&D staff at key sites by 2012 [8] [2] [3]. Analysts should treat these as two interlocking but separable commitments: sustained engineering and manufacturing collaboration with Israeli tech, plus venture capital and startup partnerships that can expand or contract in response to market and geopolitical pressures.
6. Contradictions, agendas and what to watch next
Sources vary in tone and motive: some coverage frames Samsung Next’s exit as a BDS victory or war‑related economic fallout [6] [3], while corporate and trade‑focused accounts emphasize long‑term R&D commitments and ongoing foundry collaboration [2] [4]. Readers should note potential agendas — advocacy outlets emphasize withdrawal as a political win, business and industry sources emphasize continuing technical ties. The clearest, verifiable fact is the dual outcome: Samsung Next withdrew its Tel Aviv venture operations in April 2024, while Samsung’s R&D and foundry engagements in Israel persisted through at least 2025. Watch for formal Samsung corporate statements, updated SRIL reporting, and funding tallies for Israeli startups in official VC databases to track whether venture re‑entry or further consolidation occurs [3] [1].