Chip exports to Ireland behind plunge in Israeli EU exports

Israeli exports of products to the EU have fallen considerably in current months, to NIS 36.8 billion shekels between January and August 2025 from NIS 40.8 billion within the corresponding interval of final 12 months, the Central Bureau of Statistics stories. In August 2025 itself, exports to the EU fell 25% to NIS 3.5 billion from NIS 4.7 billion in August 2024. What has triggered the dramatic change within the commerce steadiness with Europe? The reply is Eire.

For the reason that begin of 2025, Israeli exports to Eire have plunged over 50%. Eire’s most essential import merchandise from Israel is chips, that are primarily exported there from Israel by Intel. Furthermore, over the identical interval, there was a rise in Israeli chip exports to the US, and a rise in Israeli exports to Germany – Israel’s different essential export vacation spot in Europe. Nevertheless, these two weren’t ample to offset Eire’s dramatic decline.

Improve in exports to Germany, lower to Cyprus

Exports to Eire because the starting of the 12 months have been minimize from NIS 8.2 billion between January and August 2024 to solely NIS 3.9 billion within the corresponding interval in 2025. Though this dramatic drop is considerably offset, as talked about, by a rise of NIS 2.3 billion in exports to Germany throughout the identical interval, complete exports to the EU fell NIS 4 billion. That is additionally because of a fall of NIS 1 billion in exports to Cyprus over the identical interval, primarily chemical substances.

Shift in chip exports in direction of the US

The main Israeli export to Eire is chips, and in response to Central Bureau of Statistics knowledge for July, chip exports to Eire have dropped dramatically: from $369 million in July 2024 to simply $40 million in July 2025, a fall of about 90%.

Nevertheless, chip exports to the US have jumped from $58 million in July 2024 to $265 million in July 2025. It is a quite dramatic change, which suggests a shift in exports from Eire to the US, however complete chip exports are nonetheless in decline.

Total, in response to the figures, exports of “digital elements and boards” (primarily chips) have fallen 22% because the starting of 2025 in contrast with the identical interval final 12 months, from NIS 15.9 billion to NIS 12.4 billion.

The chip trade is led by Intel, which operates in Israel, Eire and the US, and has minimize its workforce in current months. It’s doable {that a} change in Intel’s operations and maybe a shift in exports from Eire to the US contributed to the decline, however the firm’s response couldn’t be obtained by the point of going to press.

Some firms would like to not commerce with Israel

Whereas sentiment in direction of Israel in Europe is cooling, and numerous nations comparable to Eire and Spain have even demanded sanctions or the cancellation of agreements, no official steps have but been taken towards Israel.

In response to Dr. Emmanuel Navon of the Faculty of Political Science, Authorities and Worldwide Affairs at Tel Aviv College, “All commerce relations with Israel are performed in Brussels. No EU member state can undertake an impartial distinctive coverage in direction of a 3rd nation.”

<Thus, commerce relations are performed with the EU as a complete, which is Israel’s largest buying and selling companion. He provides, “The EU itself can impose restrictions comparable to freezing applications and labeling merchandise manufactured throughout the Inexperienced Line, and two weeks in the past the EU Fee President Ursula von der Leyen spoke about freezing R&D agreements however that has not but been accredited.”

The EU requires consensus or a certified majority for many choices in it, so coverage adjustments in it are typically fairly gradual. Nevertheless, he says, “In nations with a comparatively hostile angle in direction of Israel, comparable to Eire, it’s doable that sure firms will favor to not commerce with Israel straight, as a result of it’s a headache by way of public stress and on behalf of the BDS motion.”

Nonetheless, an financial supply warns towards leaping to conclusions too rapidly: “It could be a technical matter, of adjusting the classification or timing of an Intel buyer. Such issues have occurred previously, particularly in exports for which the customs of the receiving nation is accountable, and the customs fee is decided by it. Nonetheless, that is an distinctive determine.”

The Ministry of Economic system and Business mentioned that this isn’t a political matter however a enterprise one and that the decline in chip exports to Eire is rooted in adjustments happening within the international chip market.

Printed by Globes, Israel enterprise information – en.globes.co.il – on September 28, 2025.

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