WASHINGTON — With nearly 6 million Americans unemployed and regular bouts of layoffs in the U.S. tech industry, major American tech companies like Google, Microsoft and Intel Corporation are nonetheless moving key operations, billions in investments, and thousands of jobs to Israel — a trend that has largely escaped media attention or concern from even “America first” politicians.
by Whitney Webb
The fact that this massive transfer of investment and jobs has been so overlooked is particularly striking given that it is largely the work of a single leading neoconservative Republican donor who has given millions of dollars to President Donald Trump.
To make matters worse, many of these top tech companies shifting investment and jobs to Israel at record rates continue to collect sizable U.S. government subsidies for their operations while they move critical aspects of their business abroad, continue to layoff thousands of American workers, and struggle to house their growing company branches in Israel. This is particularly troubling in light of the importance of the tech sector to the overall U.S. economy, as it accounts for 7.1 percent of total GDP and 11.6 percent of total private-sector payroll.
Furthermore, many of these companies are hiring members of controversial Israeli companies — known to have spied on Americans, American companies, and U.S. federal agencies — as well as numerous members of Israeli military intelligence as top managers and executives.
Several U.S. tech giants including Google, Microsoft and Intel Corporation have filled top positions with former members of Israeli military intelligence and are heavily investing in their Israeli branches while laying off thousands of American employees, all while receiving millions of dollars in U.S. government subsidies funded by American taxpayers.
This massive transfer of the American tech industry has largely been the work of one leading Republican donor — billionaire hedge fund manager Paul Singer, who also funds the neoconservative think tank American Enterprise Institute (AEI), the Islamophobic and hawkish think tank Foundation for Defense of Democracies (FDD), the Republican Jewish Coalition (RJC), and also funded the now-defunct Foreign Policy Initiative (FPI).
Singer’s project to bolster Israel’s tech economy at the U.S.’ expense is known as Start-Up Nation Central, which he founded in response to the global Boycott, Divest and Sanctions (BDS) movement that seeks to use nonviolent means to pressure Israel to comply with international law in relation to its treatment of Palestinians.
This project is directly linked to Israeli Prime Minister Benjamin Netanyahu, who in recent years has publicly mentioned that it has been his “deliberate policy” to have former members of Israel’s “military and intelligence units … merge into companies with local partners and foreign partners” in order to make it all but impossible for major corporations and foreign governments to boycott Israel.
In this report, MintPress identifies dozens of former members of an elite Israeli military intelligence unit who now hold top positions at Microsoft, Google and Facebook.
Singer’s nonprofit organization has acted as the vehicle through which Netanyahu’s policy has been realized, via the group’s close connections to the Israeli PM and Singer’s long-time support for Netanyahu and the Likud Party. With deep ties to Netanyahu, the American Israel Public Affairs Committee (AIPAC), and controversial tech companies — like Amdocs — that spied on the American government, this Singer-funded organization has formed a nexus of connections between the public and private sectors of both the American and Israeli economies with the single goal of making Israel the new technology superpower, largely at the expense of the American economy and government, which currently gives $3.2 billion in aid to Israel annually.
Researched and developed in Israel
In recent years, the top U.S. tech companies have been shifting many of their most critical operations, particularly research and development, to one country: Israel. A 2016 report in Business Insider noted that Google, Facebook, Microsoft, Amazon and Apple had all opened up research and development (R&D) centers in recent years, with some of them having as many as three such centers in Israel, a country roughly the size of New Jersey. Other major tech companies that have also opened key operation and research centers in Israel include Sandisk, Nvidia, PayPal, Palantir and Dell. Forbes noted last year that the world’s top 10 tech companies were now “doing mission-critical work in Israel that’s core to their businesses back at HQ.”
Yet, some of these tech giants, particularly those based in the U.S., are heavily investing in their Israeli branches while laying off thousands of American employees, all while receiving millions of dollars in U.S. government subsidies funded by American taxpayers.
For example, Intel Corporation, which is the world’s second largest manufacturer of semiconductor computer chips and is headquartered in California, has long been a major employer in Israel, with over 10,000 employees in the Jewish state. However, earlier this year, Intel announced that it would be investing $11 billion in a new factory in Israel and would receive around $1 billion in an Israeli government grant for that investment. Just a matter of months after Intel announced its major new investment in Israel, it announced a new round of layoffs in the United States.
Yet this is just one recent example of what has become a trend for Intel. In 2018, Intel made public its plan to invest $5 billion in one of its Israeli factories and had invested an additional $15 billion in Israeli-created autonomous driving technology a year prior, creating thousands of Intel jobs in Israel. Notably, over that same time frame, Intel has cut nearly 12,000 jobs in the United States. While this great transfer of investment and jobs was undermining the U.S. economy and hurting American workers, particularly in the tech sector, Intel received over $25 million dollars in subsidies from the U.S. federal government.
A similar phenomenon has been occurring at another U.S.-based tech giant, Microsoft. Beginning in 2014 and continuing into 2018, Microsoft has laid off well over 20,000 employees, most of them Americans, in several different rounds of staff cuts. Over that same time period, Microsoft has been on a hiring spree in Israel, building new campuses and investing billions of dollars annually in its Israel-based research and development center and in other Israeli start-up companies, creating thousands of jobs abroad. In addition, Microsoft has been pumping millions of dollars into technology programs at Israeli universities and institutes, such as the Technion Institute. Over this same time frame, Microsoft has received nearly $197 million in subsidies from the state governments of Washington, Iowa and Virginia.
Though Israeli politicians and tech company executives have praised this dramatic shift as the result of Israel’s tech prowess and growing reputation as a technological innovation hub, much of this dramatic shift has been the work of the Netanyahu-tied Singer’s effort to counter a global movement aimed at boycotting Israel and to make Israel a global “cyber power.”