The survey also reports that technology-based exports from Israel will fall by 9.5%, or about $1.67 billion, during 2008. Israeli electronics hardware and software exports totaled $17.7 billion in 2007. The association had predicted a 10% growth in technology-based exports in 2008, the annual average for the last four years.

The problem stems from the devaluation of the U.S. dollar against the New Israeli Shekel (NIS.) by a total of 14.9% over the last 14 months. Since most of the exporters' sales are made in U.S. dollars, while much of their costs and salaries are incurred in Shekels, the gap between profits from sales and the costs associated in doing business has continued to widen.

Additionally, the Israeli electronics industry has traditionally employed 3,000 to 4,000 workers a year, along with an approximate 10,000 indirect workers.

Given the recent trend in U.S. Dollar devaluation, the association is predicting that the industry may lose as many as 29,000 jobs. Technology-based companies interviewed in the survey told the association that they are considering moving some of their business activities out of the country as a hedge against the weakness of the dollar.

Yehuda Zisapel, association chairman, has called upon the Israeli government to help the technology industry to increase its workforce and sales by instituting a policy that would drive the keep the Shekel at a level of 4.3 NIS to the dollar.