After raising USD$110M and then the acquisition of NeuroBlade’s engineering team by Amazon’s Annapurna Labs, to innovate on next generation products, in October 2025; it is clear that the shift from pure software to high-CAPEX deep-tech is the new frontier.
Whether it’s replacing copper with light or redefining how quantum computers “speak,” the following Israeli scaleup companies represent the vanguard of this transformation.
Newphotonics – Silicon Photonic Chip Technology for Data Centers
NewPhotonics specializes in optical connectivity solutions designed to tackle bandwidth and power challenges, especially in AI-driven applications. Their focus is on developing integrated photonic circuits and optical processing technologies to improve performance and energy efficiency for AI clusters. The company recently introduced new products like the second-generation photonic integrated circuit (PIC) with an integrated optical equalizer.
Seed Funding: USD$29.14M
DustPhotonics – End-to-end Silicon Photonics Solutions
DustPhotonics creates technology for optical connections using silicon photonics, crucial for high-speed data communication. Their CARMEL series and Low Loss Laser Coupling (L3C) technology aim to enhance the efficiency and reliability of data transfer while minimizing energy use and operational costs. This solution facilitates the seamless integration of components necessary for modern optical communication systems.
D-round Funding: USD$82M
Weebit Nano – Advanced Silicon Oxide ReRAM Technology
Weebit Nano develops advanced semiconductor memory technology. The company’s resistive random-access memory (ReRAM) addresses the need for higher performance and lower power memory solutions in electronic products such as IoT devices, smartphones, robotics, autonomous vehicles, 5G communications, and artificial intelligence.
Public on the Australian Stock Exchange (ASX): USD$138.69M
Xsight Labs – End-to-end Connectivity Solutions for Cloud Infrastructure
Xsight Labs is a fabless semiconductor company that enables end-to-end connectivity for the cloud service provider and hyper-scale data center networks. The company’s X1 family of 25.6Tbps and 12.8Tbps fully programmable data center switches deliver application-optimized switching for top-of-rack, data center fabric, and HPC, AI, and ML clusters.
D-round Funding: USD$155M
Quantum Machines – Control Systems for Quantum Computers
Quantum Machines is the creator of a complete hardware and software solution for the control and operation of quantum computers. The company’s Quantum Orchestration Platform (QOP) aims to facilitate current quantum research and development and enable future quantum breakthroughs.
https://www.quantum-machines.co/
C-round Funding: USD$281M
NextSilicon – Computational Platform for High-Performance Applications
NextSilicon focuses on developing a compute platform tailored for high-performance computing (HPC). Their technology incorporates software algorithms that enable hardware to dynamically reconfigure during runtime, aimed at increasing adaptability and operational efficiency.
C-round Funding: USD$302.6M
Hailo – AI Processor for Edge Devices
Hailo is focused on enabling smart edge technologies to reach their full potential. Its solutions bridge the gap between existing and future AI technologies, providing the compute capacity needed to power these applications.
C-round Funding: USD$346.41M
The Israeli semiconductor landscape is currently defined by a shift from “startup agility” to industrial resilience and deep-tech scaleup dominance.
As of the writing on this article in early 2026, the sector has consolidated its position as a global R&D powerhouse, anchored by massive institutional bets and high-conviction acquisitions.
Reach out to your local Israel Trade Officer to connect with any of the above companies for your country.
Sydney: Industry 4.0 Manager: Jeremy Ungar – jeremy.ungar@israeltrade.gov.il
israeltrade.org.au 