Silicom (SILC) 20-F27 Apr 232022 FY Annual report (foreign)Financial data

Company Profile

Document And Entity Information

Document And Entity Information	12 Months Ended
Document And Entity Information	Dec. 31, 2022 shares
Document Type	20-F
Amendment Flag	false
Document Registration Statement	false
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Document Period End Date	Dec. 31, 2022
Entity File Number	000-23288
Entity Current Reporting Status	Yes
Entity Registrant Name	SILICOM LTD.
Entity Incorporation, State or Country Code	L3
Entity Address, Address Line One	14 Atir Yeda Street
Entity Address, City or Town	Kfar Sava
Entity Address, Country	IL
Entity Address, Postal Zip Code	4464323
Title of 12(b) Security	Ordinary Shares, NIS 0.01 nominal value per share
Trading Symbol	SILC
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding	6,738,706
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Document Accounting Standard	U.S. GAAP
Entity Shell Company	false
Entity Central Index Key	0000916793
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Auditor Firm ID	1309
Auditor Location	Tel-Aviv, Israel
Auditor Name	Kesselman & Kesselman
Kpmg International [Member]
Auditor Firm ID	1057
Auditor Location	Tel Aviv, Israel
Auditor Name	Somekh Chaikin
Business Contact [Member]
Contact Personnel Name	Eran Gilad
Entity Address, Address Line One	14 Atir Yeda Street
Entity Address, City or Town	Kfar Sava
Entity Address, Country	IL
Entity Address, Postal Zip Code	4464323
City Area Code	972
Local Phone Number	9-764-4555

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets
Cash and cash equivalents	$ 30,734	$ 29,285
Marketable securities	4,020	8,266
Accounts receivable:
Trade, net	27,258	31,120
Other	3,620	4,693
Inventories	87,985	75,753
Total current assets	153,617	149,117
Marketable securities	15,163	23,773
Assets held for employees' severance benefits	1,715	1,882
Deferred tax assets	502	1,616
Property, plant and equipment, net	4,488	4,576
Intangible assets, net	6,710	4,314
Operating leases right-of-use, net	8,441	8,765
Goodwill	25,561	25,561
Total assets	216,197	219,604
Current liabilities
Trade accounts payable	15,922	29,918
Other accounts payable and accrued expenses	9,641	18,582
Operating lease liabilities	1,549	1,811
Total current liabilities	27,112	50,311
Long-term liabilities
Operating lease liabilities	6,291	7,377
Liability for employees' severance benefits	3,425	3,443
Deferred tax liabilities	74	10
Total liabilities	36,902	61,141
Shareholders' equity
Ordinary shares, ILS 0.01 par value; 10,000,000 shares authorized; 7,670,033 and 7,670,033 issued as at December 31, 2021 and 2022, respectively; 6,709,528 and 6,738,706 outstanding as at December 31, 2021 and 2022, respectively	22	22
Additional paid-in capital	66,556	63,390
Treasury shares (at cost) 960,505 and 933,933 ordinary shares as at December 31, 2021 and 2022, respectively	(34,896)	(34,995)
Retained earnings	147,613	130,046
Total shareholders' equity	179,295	158,463
Total liabilities and shareholders’ equity	$ 216,197	$ 219,604

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - ₪ / shares	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Ordinary shares, par value	₪ 0.01	₪ 0.01
Ordinary shares, authorized	10,000,000	10,000,000
Ordinary shares, issued	7,670,033	7,670,033
Ordinary shares, outstanding	6,738,706	6,709,528
Ordinary shares, treasury shares	933,933	960,505

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Statement [Abstract]
Sales	$ 150,582	$ 128,460	$ 107,398
Cost of sales	98,626	84,072	73,632
Gross profit	51,956	44,388	33,766
Operating expenses
Research and development	20,563	20,091	17,244
Sales and marketing	6,990	6,599	6,209
General and administrative	4,477	4,641	4,065
Total operating expenses	32,030	31,331	27,518
Operating income	19,926	13,057	6,248
Financial income, net	2,464	(152)	1,034
Income before income taxes	22,390	12,905	7,282
Income taxes	4,084	2,364	1,557
Net income	$ 18,306	$ 10,541	$ 5,725
Income per share:
Basic income per ordinary share (US$)	$ 2.733	$ 1.544	$ 0.804
Diluted income per ordinary share (US$)	$ 2.694	$ 1.513	$ 0.8
Weighted average number of ordinary shares used to compute basic income per share (in thousands)	6,696,671	6,825,630	7,118,244
Weighted average number of ordinary shares used to compute diluted income per share (in thousands)	6,796,419	6,968,802	7,156,763

Consolidated Statements of Chan

Consolidated Statements of Changes In Shareholders' Equity - USD ($) $ in Thousands		Ordinary shares [Member]		Additional paid-in capital [Member]	Treasury shares [Member]	[1]	Retained earnings [Member]	Total
Balance at Dec. 31, 2019		$ 22		$ 57,130	$ (8,009)		$ 113,780	$ 162,923
Balance, shares at Dec. 31, 2019	[2]	7,351,317
Exercise of options and RSUs	[4]	$ 0	[3]	276	0		0	276
Exercise of options and RSUs, shares	[2],[4]	51,357
Purchase of treasury shares		$ 0		0	(16,798)		0	(16,798)
Purchase of treasury shares, shares	[2]	(503,159)
Share-based compensation		$ 0		2,711	0		0	2,711
Net income		0		0	0		5,725	5,725
Balance at Dec. 31, 2020		$ 22		60,117	(24,807)		119,505	154,837
Balance, shares at Dec. 31, 2020	[2]	6,899,515
Purchase of treasury shares		$ 0		0	(14,291)		0	(14,291)
Purchase of treasury shares, shares	[2]	(322,689)
Reissuance of treasury shares under share-based compensation plan		$ 0	[3]	411	4,103		0	4,514
Reissuance of treasury shares under share-based compensation plan, shares	[2]	132,702
Share-based compensation		$ 0		2,862	0		0	2,862
Net income		0		0	0		10,541	10,541
Balance at Dec. 31, 2021		$ 22		63,390	(34,995)		130,046	158,463
Balance, shares at Dec. 31, 2021	[2]	6,709,528
Purchase of treasury shares		$ 0		0	(3,428)		0	(3,428)
Purchase of treasury shares, shares	[2]	(80,120)
Reissuance of treasury shares under share-based compensation plan		$ 0		(411)	3,527		(739)	2,377
Reissuance of treasury shares under share-based compensation plan, shares	[2]	109,298
Share-based compensation		$ 0		3,577	0		0	3,577
Net income		0		0	0		18,306	18,306
Balance at Dec. 31, 2022		$ 22		$ 66,556	$ (34,896)		$ 147,613	$ 179,295
Balance, shares at Dec. 31, 2022	[2]	6,738,706

[1]Company shares held by the Company. Presented as a reduction of equity at their cost to the Company. The treasury shares have no rights.[2]Net of shares held by Silicom Inc. and Silicom Ltd.[3]Less than 1 thousand.[4]Restricted share units (hereinafter - "RSUs")

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities
Net income	$ 18,306	$ 10,541	$ 5,725
Adjustments required to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	2,415	2,437	2,384
Impairment of intangible assets	0	0	1,657
Write-down of obsolete inventory	3,002	5,246	1,578
Changes in marketable securities	(20)	621	244
Share-based compensation expense	3,577	2,862	2,711
Deferred taxes, net	1,178	48	(61)
Changes in assets and liabilities:
Accounts receivable - trade	3,695	(9,472)	3,467
Accounts receivable - other	396	1,217	(1,362)
Change in liability for employees' severance benefits, net	149	138	153
Inventories	(15,289)	(33,526)	(13,336)
Trade accounts payable	(12,410)	15,031	(2,076)
Other accounts payable and accrued expenses	(9,089)	5,936	3,872
Net cash provided by (used in) operating activities	(4,090)	1,079	4,956
Cash flows from investing activities
Proceeds from short term bank deposits, net	0	5,000	8,542
Purchase of property, plant and equipment	(2,089)	(2,586)	(1,694)
Investment in intangible assets	(2,603)	(3,572)	(1,487)
Proceeds from maturity of marketable securities	16,029	37,850	16,629
Purchases of marketable securities	(3,998)	(19,927)	(6,558)
Other	934	0	0
Net cash provided by investing activities	8,273	16,765	15,432
Cash flows from financing activities
Exercise of options	0	0	276
Purchase of treasury shares	(3,428)	(14,291)	(16,798)
Proceeds from reissuance of treasury shares upon exercise of options	2,377	4,514	0
Net cash used in financing activities	(1,051)	(9,777)	(16,522)
Effect of exchange rate changes on cash balances held	(1,683)	542	341
Increase in cash and cash equivalents	1,449	8,609	4,207
Cash and cash equivalents at beginning of year	29,285	20,676	16,469
Cash and cash equivalents at end of year	30,734	29,285	20,676
Supplementary cash flow information Non-cash transactions:
Recognition of right of use assets and lease liabilities	1,433	451	7,201
Investments in property, plant and equipment	37	59	347
Non-cash Transactions Including Investments and right of use assets and lease liabilities	1,470	510	7,548
Cash paid (received) during the year for:
Income taxes	$ (411)	$ 2,371	$ 1,284

General

General	12 Months Ended
General	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
General	Note 1 - General Silicom Ltd. is an Israeli corporation engaged in designing, manufacturing, marketing and supporting high performance networking and data infrastructure solutions for a broad range of servers, server based systems and communications devices. The Company's shares have been traded in the United States on the National Association of Securities Dealers Automated Quotation System ("NASDAQ") since February 1994. Since January 2, 2014 the Company's shares have been traded on the NASDAQ Global Select Market (prior thereto they were traded on the NASDAQ Global Market). In these financial statements the terms "Company" or "Silicom" refer to Silicom Ltd. and its wholly owned subsidiaries, Silicom Connectivity Solutions, Inc. (hereinafter - "Silicom Inc.") and Silicom Denmark A/S (Fiberblaze A/S) (hereinafter – "Silicom Denmark"), whereas the term "subsidiaries" refers to Silicom Inc. and Silicom Denmark. U.S. and global markets are experiencing volatility and disruption following the escalation of geopolitical tensions and the start of the military conflict between Russia and Ukraine. In February 2022, Russia launched a full-scale military invasion of Ukraine. Although the length and impact of the ongoing military conflict is highly unpredictable, the conflict in Ukraine could lead to market disruptions, including significant volatility in commodity prices, credit and capital markets. Additionally, Russia’s prior annexation of Crimea, recent recognition of two separatist republics in the Donetsk and Luhansk regions of Ukraine and subsequent military interventions in Ukraine have led to sanctions and other penalties being levied by the United States, European Union and other countries against Russia, Belarus, the Crimea Region of Ukraine, the so-called Donetsk People’s Republic, and the so-called Luhansk People’s Republic, including agreement to remove certain Russian financial institutions from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment system. Additional potential sanctions and penalties have also been proposed and/or threatened. Russian military actions and the resulting sanctions could adversely affect the global economy and financial markets and lead to instability and lack of liquidity in capital markets. Any of the abovementioned factors could affect our business, financial condition, and operating results. The extent and duration of the military action, sanctions and resulting market disruptions are impossible to predict.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Dec. 31, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2 - Summary of Significant Accounting Policies The significant accounting policies, which are applied consistently throughout the periods presented, are as follows: A. Financial statements in US dollars Substantially all sales of the Company are made outside of Israel (see Note 13A regarding geographical distribution), in US dollars ("dollars"). Most purchases of materials and components, and a significant part of the marketing costs are made or incurred, primarily in dollars. Therefore, the dollar is the currency that represents the principal economic environment in which the Company operates and is thus its functional currency. Transactions and balances originally denominated in dollars are presented at their original amounts. Balances in non-dollar currencies are translated into dollars using historical and current exchange rates for non-monetary and monetary balances, respectively. For non-dollar transactions reflected in the statement of income (loss), the transaction date exchange rates are used. Depreciation, amortization and other changes deriving from non-monetary items are based on historical exchange rates. The resulting transaction gains or losses are recorded as net financial income or expenses. B . Basis of presentation The accompanying consolidated financial statements have been prepared with accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. C. Estimates and assumptions T he preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include revenue recognition over time, credit loss, income taxes, impairment of inventories, marketable securities, impairment of goodwill, intangible assets and the assumptions used to estimate the fair value of share-based compensation. D. Cash and cash equivalents The Company considers highly liquid investments with original maturities of three months or less from the date of deposit to be cash equivalents. E. Short-term bank deposits Short term bank deposits consist of bank deposits with original maturities of more than three months and up to twelve months. F. Marketable securities The Company classifies its marketable securities as held-to-maturity as they are debt securities in which the Company has the intent and ability to hold to maturity. Held-to-maturity (HTM) debt securities are recorded at amortized cost adjusted for the amortization or accretion of premiums or discounts. Premiums and discounts on debt securities are amortized or accreted over the life of the related held-to-maturity security as an adjustment to yield using the effective interest method. Such amortization and accretion are included in the "Financial income, net" line item in the consolidated statements of operations. The Company recognizes current expected credit losses for financial assets held at amortized cost. The Company uses forward-looking information to calculate credit loss estimates. G. Trade accounts receivable, net Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company presents accounts receivable in the consolidated balance sheets net of allowance for expected credit losses for potential uncollectible amounts. The Company estimates the collectability of accounts receivable balances and adjust the allowance for expected credit losses based on the Company's assessment of collectability by reviewing accounts receivable on an aggregated basis where similar characteristics exist and on an individual basis when it identifies specific customers with known disputes or collectability issues. The Company also considers a number of factors to assess collectability, including the past due status, creditworthiness of the specific customer, payment history and reasonable and supportable forecasts of future economic conditions. As of December 31, 2021 and 2022, allowance for credit losses amounted to US$ 20 thousand. H. Inventories Inventories are stated at the lower of cost and net realizable value. Cost is determined using the "weighted average-cost" method. The Company writes down obsolete or slow moving inventory to its net realizable value. I. Assets held for employees’ severance benefits Assets held for employees’ severance benefits represent contributions to severance pay funds and cash surrender value of insurance policies. The assets are recorded at their current cash redemption value. J. Property, plant and equipment Property, plant and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets at the following annual rates: % Machinery and equipment 15 - 33 Office furniture and equipment 6 - 33 Leasehold improvements * * Over the shorter term of the lease or the useful life of the asset K. Goodwill and other intangible assets Goodwill reflects the excess of the purchase price of business acquired over the fair value of net assets acquired. Goodwill is not amortized but instead is tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. The Company operates in one operating segment and this segment comprises one reporting unit. The Company may first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company performs a qualitative assessment and concludes that it is more likely than not that the fair value of a reporting unit exceeds its carrying value, goodwill is not considered impaired and the impairment test is not required. However, if the Company concludes otherwise, it is then required to perform a quantitative assessment for goodwill impairment. The Company performs its quantitative goodwill impairment test by comparing the fair value of its reporting unit with its carrying value. If the reporting unit’s carrying value is determined to be greater than its fair value, an impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit’s fair value. If the fair value of the reporting unit is determined to be greater than its carrying amount, the applicable goodwill is not impaired. Intangible assets that are not considered to have an indefinite useful life are amortized over their estimated useful lives in proportion to the economic benefits realized. This accounting policy results in amortization of such intangible assets in the straight-line method. For the years ended December 31, 2020, 2021 and 2022, no impairment losses were recorded. L. Impairment of long-lived assets In accordance with Impairment or Disposal of long-lived assets Subsections of FASB ASC Subtopic 360-10, Property, Plant, and Equipment – Overall. Long-lived assets, such as property, plant, equipment and purchased intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or an asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third party independent appraisals, as considered necessary. M. Leases The Company elected the short-term lease recognition exemption for all leases with a term shorter than 12 months. This means that for those leases, the Company does not recognize right-of-use ("ROU") assets or lease liabilities, but recognizes lease expenses over the lease term on a straight-line basis. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. As of December 31, 2022, all of the company's leases are operating leases. On the commencement date, the lease payments shall include variable lease payments that depend on an index (such as the Consumer Price Index), initially measured using the index at the commencement date. The Company does not remeasure the lease liability for changes in future lease payments arising from changes in an index unless the lease liability is remeasured for another reason. Therefore, after initial recognition, such variable lease payments are recognized in profit or loss as they are incurred. Variable payments that depends on use of the underlying asset are not included in the lease payments. Such variable payments are recognized in profit or loss in the period in which the event or condition that triggers the payment occurs. The Company’s incremental borrowing rate for a lease is the rate of interest that it would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. After lease commencement, the Company measures the lease liability at the present value of the remaining lease payments using the discount rate determined at lease commencement (as long as the discount rate hasn’t been updated as a result of a reassessment event). The Company subsequently measures the ROU asset at the present value of the remaining lease payments, adjusted for the remaining balance of any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term. The Company’s lease agreements have remaining lease terms of 2 to 10 years. Some of these agreements include options to terminate the leases immediately. Some of our vehicle lease agreements include rental payments based on the actual usage of the vehicles and other lease agreements include rental payments adjusted periodically for inflation. The agreements related to leases in Israel are in Israeli Shekel ("ILS") or in ILS linked to the Israeli Consumer Price Index or to the US Dollars. The agreements related to leases in the USA are in US Dollars and the agreements related to leases in Denmark are in Danish Krone ("DKK"). The Company’s lease agreements do not contain any residual value guarantees. See Note 10. N. Revenue recognition The Company derives revenues primarily from the sale of networking and data infrastructure solutions. The Company recognizes revenue upon transfer of control of the promised goods in a contract with a customer in an amount that reflects the consideration the Company expects to receive in exchange for those products. Transfer of control occurs once the customer has the contractual right to use the product, generally upon shipment or once delivery and risk of loss has transferred to the customer. The Company accounts for a contract with customer when it has approval and commitment from both parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Each of the Company's contracts includes one type of performance obligation. The Company evaluates each distinct performance obligation within a contract, whether it is satisfied at a point in time or over time. Most of the Company's revenues are recognized at a point in time. Revenue is recognized over time for sales of goods manufactured to unique customer specifications, in which the Company’s performance does not create an asset with an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date if the customer were to terminate the contract. Revenue recognized over time is measured by the costs incurred to date relative to the estimated total direct costs to fulfill each contract. Incurred costs represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Contract costs include labor, materials and overhead. O. Cost of sales Cost of sales consist primarily of production costs of finished goods manufactured by the company, with assistance of sub-contractors, from (i) components purchased from third parties, and (ii) sub-assemblies manufactured by sub-contractors under the Company’s directions and supervision as well as employee-related expenses and overhead expenses of the Company’s production lines. P. Research and development costs and capitalized software development costs Software development costs (mainly salary) related to programmable components incorporated into the Company's products, are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. The Company has determined that technological feasibility for its software components of hardware products is reached after all high-risk development issues have been resolved through coding and testing. Amortization begins once the software is ready for its intended use, generally based on the pattern in which the economic benefits will be consumed. The amortization of these costs is included in cost of revenue over the estimated life of the products. Other costs incurred in the research and development of the Company’s products are expensed as incurred. Q. Allowance for product warranty The Company grants assurance-type warranties related to certain products to end-users. The Company estimates its obligation for such warranties to be immaterial on the basis of historical experience. Accordingly, these financial statements do not include an accrual for warranty obligations. R. Treasury shares Treasury shares are recorded at cost and presented as a reduction of shareholders' equity. The Company reissues treasury shares under the Global Share Incentive Plan (2013), upon exercise of options and upon vesting of restricted stock units ("RSU"). Reissuance of treasury shares, based on the Company's policy of first-in, first-out (FIFO), is accounted for in accordance with ASC 505-30 whereby gains are credited to additional paid-in capital and losses are charged to additional paid-in capital to the extent that previous net gains are included therein and otherwise to retained earnings. S. Income taxes Deferred taxes are accounted for under the asset and liability method based on the estimated future tax effects of temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases, and for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are presented as non-current assets and liabilities and measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of operations in the period that includes the enactment date. The Company recognizes the effect of uncertain tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured as the largest amount that is greater than 50 percent likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Taxes which would apply in the event of disposal of investments in foreign subsidiaries have not been taken into account in computing the deferred taxes, as the Company's intention is to hold, and not to realize the investments. As of December 31, 2022, the cumulative amount of earnings of foreign subsidiaries upon which deferred taxes have not been provided is approximately US$ 16.3 million. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable. T. Share-based compensation The Company recognizes compensation expense based on estimated grant date fair value in accordance with ASC Topic 718, Compensation -Stock Compensation as follows: When portions of an award vest in increments during the requisite service period (graded-vesting award), the Company’s accounting policy is to recognize compensation cost for the award over the requisite service period for each separately vesting portion of the award. Equity awards granted to employees are accounted for using the grant date fair value method. The grant date fair value is determined as follows: for stock options using the Binomial option-pricing model and for restricted stock units (“RSUs”) based on the market value of the Company’s stock on the date of grant, less an estimate of dividends that will not accrue to RSUs holders prior to vesting. The fair value of share based payment awards is recognized as an expense over the vesting period. The expected average volatility represents a weighted average standard deviation rate for the price of the Company’s ordinary shares on the NASDAQ National Market. For awards with only market conditions, compensation expense is not reversed if the market conditions are not satisfied. U. Basic and diluted earnings per share B asic income per ordinary share is calculated by dividing the net income attributable to ordinary shares, by the weighted average number of ordinary shares outstanding (net of treasury shares). Diluted income per ordinary share calculation is similar to basic income per ordinary share except that the weighted average of ordinary shares outstanding is increased to include outstanding potential ordinary shares during the period if dilutive. Potential ordinary shares arise from stock options and RSUs, and the dilutive effect is reflected by the application of the treasury stock method. The following table summarizes information related to the computation of basic and diluted income per ordinary share for the years indicated. Year ended December 31 2020 2021 2022 Net income attributable to ordinary shares (US$ thousands) 5,725 10,541 18,306 Weighted average number of ordinary shares outstanding used in basic income per ordinary share calculation 7,118,244 6,825,630 6,696,671 Add of outstanding dilutive potential ordinary shares 38,519 143,172 99,748 Weighted average number of ordinary shares outstanding used in diluted income per ordinary share calculation 7,156,763 6,968,802 6,796,419 Basic income per ordinary shares (US$) 0.804 1.544 2.733 Diluted income per ordinary shares (US$) 0.800 1.513 2.694 Weighted average number of shares related to options and RSUs excluded from the diluted earnings per share calculation because of anti-dilutive effect 180,916 65,534 251,868 V. Comprehensive Income For the years ended December 31, 2020, 2021 and 2022, comprehensive income equals net income. W. Fair Value Measurements The Company's financial instruments consist mainly of cash and cash equivalents, marketable securities, trade and other receivables and trade accounts payable. The carrying amounts of these financial instruments, except for marketable securities, approximate their fair value because of the short maturity of these investments. The fair value of marketable securities is presented in Note 4 to these consolidated financial statements. Assets held for severance benefits are recorded at their current cash redemption value. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. X. Concentrations of risks (1) Credit risk Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist principally of cash and cash equivalents, marketable securities, trade receivables and assets held for employees’ severance benefits. Cash and cash equivalents balances of the Company, which are subject to credit risk, consist of cash accounts held with major financial institutions. Marketable securities consist of held to maturity marketable securities issued by highly rated corporations. As of December 31, 2021 and 2022, the ratings of the securities in the Company's portfolio was at least A-. Nonetheless, these investments are subject to general credit and counterparty risks (such as that the counterparty to a financial instrument fails to meet its contractual obligations). The Company closely monitors extensions of credit and has never experienced significant credit losses. (2) Significant customers The Company's top four ultimate customers accounted for approximately 33% of its revenues in 2022. The Company expects that a small number of customers will continue to account for a significant portion of its revenues for the foreseeable future. See Note 13. Y. Liabilities for loss contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred.

Cash and Cash Equivalents

Cash and Cash Equivalents	12 Months Ended
Cash and Cash Equivalents	Dec. 31, 2022
Cash and Cash Equivalents [Abstract]
Cash and Cash Equivalents	Note 3 - Cash and Cash Equivalents December 31 2021 2022 US$ thousands Cash 25,368 24,016 Cash equivalents * 3,917 6,718 29,285 30,734 * Comprised mainly of bank deposits in ILS as at December 31, 2021 and 2022 carrying a weighted average interest rate of 0.03% and 3.10%, respectively.

Marketable Securities

Marketable Securities	12 Months Ended
Marketable Securities	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	Note 4 - Marketable Securities The Company's investment in marketable securities as of December 31, 2021 and 2022 are classified as ''held-to-maturity'' and consist of the following: Gross Gross unrealized unrealized Amortized holding holding Aggregate cost basis** gains (losses) fair value* US$ thousands At December 31, 2022 Held to maturity: Corporate debt securities and government debt securities Current 4,038 - (111 ) 3,927 Non-Current (1 to 3 years) 15,283 - (1,214 ) 14,069 19,321 - (1,325 ) 17,996 At December 31, 2021 Held to maturity: Corporate debt securities and government debt securities Current 8,300 43 (19 ) 8,324 Non-Current (1 to 4 years) 23,966 10 (512 ) 23,464 32,266 53 (531 ) 31,788 * Fair value is being determined using Level 2 inputs. ** Including accrued interest in the amount of US$ 227 thousand and US$ 138 thousand as of December 31, 2021 and 2022, respectively. The accrued interest is presented as part of other receivables on the balance sheet. Activity in marketable securities in 2022 US$ thousands Balance at January 1, 2021 50,810 Purchases of marketable securities 19,927 Changes in marketable securities, net (621 ) Proceeds from maturity of marketable securities (37,850 ) Balance at January 1, 2022 32,266 Purchases of marketable securities 3,998 Changes in marketable securities, net (914 ) Proceeds from maturity of marketable securities (16,029 ) Balance at December 31, 2022 19,321 The following table summarizes the gross unrealized losses or gains on investment securities and the fair value of those securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss or gain position, at December 31, 2022: Less than 12 months 12 months or more Total Unrealized Losses Fair value Unrealized Losses Fair value Unrealized Losses Fair value Held to maturity: Corporate debt securities and government debt securities (301 ) 4,595 (1,024 ) 13,401 (1,325 ) 17,996 The unrealized losses or gains on the investments were caused by changes in interest rate. The Company has the ability and intent to hold these investments until maturity and it is more likely than not that the Company will not be required to sell any of the securities before recovery.

Other Receivables

Other Receivables	12 Months Ended
Other Receivables	Dec. 31, 2022
Receivables [Abstract]
Other Receivables	Note 5 - Other Receivables December 31 2021 2022 US$ thousands Advances to suppliers 333 421 Government authorities 2,184 1,437 Prepaid expense 768 936 Other receivables 1,408 826 4,693 3,620

Inventories

Inventories	12 Months Ended
Inventories	Dec. 31, 2022
Inventory Disclosure [Abstract]
Inventories	Note 6 - Inventories December 31 2021 2022 US$ thousands Raw materials and components 57,156 71,861 Products in process 11,186 12,417 Finished products 7,411 3,707 75,753 87,985 In the years ended December 31, 2020, 2021 and 2022, the Company recorded inventory write-downs in the amount of US$ 1,578 thousand, US$ 5,246 thousand and US$ 3,002 thousand, respectively.

Property, Plant and Equipment,

Property, Plant and Equipment, Net	12 Months Ended
Property, Plant and Equipment, Net	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, Net	Note 7 - Property, Plant and Equipment, Net December 31 2021 2022 US$ thousands Machinery and equipment 17,305 19,298 Office furniture and equipment 1,129 1,190 Leasehold improvements 3,406 3,472 Property, plant and equipment 21,840 23,960 Accumulated depreciation (17,264 ) (19,472 ) Property, Plant and equipment, net 4,576 4,488 Depreciation expense for the years ended December 31, 2020, 2021 and 2022 were US$ 2,000 thousand, US$ 2,009 thousand and US$ 2,208 thousand, respectively.

Intangible Assets

Intangible Assets	12 Months Ended
Intangible Assets	Dec. 31, 2022
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Intangible Assets	Note 8 - Intangible Assets December 31 2021 2022 Useful life US$ thousands Original cost: Capitalization of software development costs 8 6,546 9,081 Licenses 3 565 633 7,111 9,714 Accumulated amortization: Capitalization of software development costs 2,366 2,431 Licenses 431 573 2,797 3,004 Intangible assets, net: Capitalization of software development costs 4,180 6,650 Licenses 134 60 4,314 6,710 Amortization expense for the years ended December 31, 2020, 2021 and 2022 were US$ 378 thousand, US$ 428 thousand and US$ 207 thousand, respectively. The estimates amortization of capitalized software development costs in relation to developments that were available for general release to customers, as of December 31, 2022, are US$ 260 thousand in 2023 and US$ 247 thousand in each of the years 2024 through 2027.

Other accounts payable and accr

Other accounts payable and accrued expenses	12 Months Ended
Other accounts payable and accrued expenses	Dec. 31, 2022
Accounts Payable and Accrued Liabilities [Abstract]
Other accounts payable and accrued expenses	Note 9 - Other accounts payable and accrued expenses December 31 2021 2022 US$ thousands Accrued expenses 8,664 2,338 Employee benefits 6,562 5,958 Government authorities 577 663 Other payables 2,779 682 18,582 9,641

Leases

Leases	12 Months Ended
Leases	Dec. 31, 2022
Leases [Abstract]
Leases	Note 10 - Leases A. The components of operating lease cost for the year ended December 31, 2020, 2021 and 2022 were as follows: Year ended December 31 2020 2021 2022 US$ thousands Operating lease costs (mainly plant and offices) 1,623 1,921 1,872 Variable lease payments not included in the lease liability 3 8 62 Short-term lease cost 285 278 273 Total operating lease cost 1,911 2,207 2,207 B. Supplemental cash flow information related to operating leases was as follows: Year ended December 31 2020 2021 2022 US$ thousands Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 1,601 1,887 1,847 Right-of-use assets obtained in exchange for lease liabilities (non-cash): Operating leases 7,201 451 1,269 C. Supplemental balance sheet information related to operating leases was as follows: December 31 2021 2022 US$ thousands Operating leases: Operating leases right-of-use 8,765 8,441 Current operating lease liabilities 1,811 1,549 Non-current operating lease liabilities 7,377 6,291 Total operating lease liabilities 9,188 7,840 December 31 2021 2022 US$ thousands Weighted average remaining lease term (years) 7.3 7.7 Weighted average discount rate 2.3 % 2.9 % E. Future lease payments under non-cancellable leases as of December 31, 2022 were as follows: December 31, 2022 US$ thousands 2023 1,793 2024 1,477 2025 1,057 2026 1,006 After 2026 3,416 Total operating lease payments 8,749 Less: imputed interest (909 ) Present value of lease liabilities 7,840

Assets Held and Liability for E

Assets Held and Liability for Employees' Severance Benefits	12 Months Ended
Assets Held and Liability for Employees' Severance Benefits	Dec. 31, 2022
Retirement Benefits [Abstract]
Assets Held and Liability for Employees' Severance Benefits	Note 11 - Assets Held and Liability for Employees' Severance Benefits A . Under Israeli law and labor agreements, Silicom is required to make severance payments to retired or dismissed employees and to employees leaving employment in certain other circumstances. In respect of the liability to the employees, individual insurance policies are purchased and deposits are made with recognized severance pay funds. The liability for severance pay is calculated on the basis of the latest salary paid to each employee multiplied by the number of years of employment. The liability is covered by the amounts deposited including accumulated income thereon as well as by the unfunded provision. B. According to Section 14 to the Severance Pay Law ("Section 14") the payment of monthly deposits by a company into recognized severance and pension funds or insurance policies releases it from any additional severance obligation to the employees that have entered into agreements with the company pursuant to such Section 14. Commencing July 1, 2008, the Company has entered into agreements with a majority of its employees in order to implement Section 14. Therefore, as of that date, the payment of monthly deposits by the Company into recognized severance and pension funds or insurance policies releases it from any additional severance obligation to those employees that have entered into such agreements and therefore the Company incurs no additional liability since that date with respect to such employees. Amounts accumulated in the pension funds or insurance policies pursuant to Section 14 are not supervised or administrated by the Company and therefore neither such amounts nor the corresponding accrual are reflected in the balance sheet. C . Consequently, the assets held for employees' severance benefits reported on the balance sheet, in respect of deposits for those employees who have signed agreements pursuant to Section 14, represent the redemption value of deposits made through June 30, 2008. The liability for employee severance benefits, with respect to those employees, represents the liability of the Company for employees' severance benefits as of June 30, 2008. As a result of the implementation of Section 14, as described above, the liability with respect to those employees is calculated on the basis of number of years of employment as of June 30, 2008, multiplied by the latest salary paid. The liability is covered by the amounts deposited, including accumulated income thereon, as well as by the unfunded provision. Such liability will be removed, either upon termination of employment or retirement. D . Expenses recorded with respect to employees' severance payments for the years ended December 31, 2020, 2021 and 2022, mainly attributed to Section 14, were US$ 986 thousand, US$ 1,104 thousand and US$ 1,194 thousand, respectively.

Shareholders' Equity

Shareholders' Equity	12 Months Ended
Shareholders' Equity	Dec. 31, 2022
Stockholders' Equity Note [Abstract]
Shareholders' Equity	Note 12 - Shareholders' Equity Capital and reserves On May 2, 2019, the Company's Board of Directors authorized and began implementation of a one-year share repurchase plan to repurchase up to $15 million of the Company's ordinary shares. On April 30, 2020 the Company's Board of Directors authorized another one-year share repurchase plan allowing the Company to invest up to $15 million to repurchase its ordinary shares. This plan has begun as the previously announced $15 million one-year share repurchase plan was completed. On April 29, 2021 the Company's Board of Directors authorized another one-year share repurchase plan allowing the Company to invest up to $15 million to repurchase its ordinary shares. This plan has begun as the previously announced $15 million one-year share repurchase plan was completed. Repurchases may be made in the open market and will be in accordance with applicable securities laws and regulations. The timing and amount of each repurchase transaction may depend on a variety of factors. The share repurchase plan does not obligate the Company to acquire any specific number of ordinary shares and may be suspended or terminated at any time at management’s discretion. Share based compensation A. On October 21, 2013 the Board resolved to adopt the Global Share Incentive Plan (2013) (the "2013 Plan") and to reserve up to 500,000 ordinary shares for issuance under the 2013 Plan to employees, directors, officers and consultants of the Company or of any subsidiary or affiliate of the Company. In January 2018, our Board approved the increase of the number of ordinary shares reserved for issuance under the 2013 Plan by 600,000 additional ordinary shares. Grants under the 2013 Plan, whether as options, restricted stock units, restricted stock or other equity based awards, including their terms, are subject to the Board of Directors' approval. Grants to directors and certain other officers are generally subject to the approvals of the Compensation Committee as well as Board of Directors, and grants to directors or a CEO (and under certain circumstances certain other officers) will also have to be approved by the Shareholders. B. Options or RSUs granted to Israeli residents may be granted under Section 102 of the Israeli Income Tax Ordinance pursuant to which the awards of options, or the ordinary shares issued upon their exercise, must be deposited with a trustee for at least two years following the date of grant. Under Section 102, any tax payable by an employee from the grant or exercise of the awards is deferred until the transfer of the awards or ordinary shares by the trustee to the employee or upon the sale of the awards or ordinary shares. Capital gains on awards granted under the plans are subjected to tax of 25% to be paid by the employee, and the Company is not entitled to a tax deduction. Gains which are not capital gains on awards under the plans are subjected to regular tax rates on individuals, and the Company is entitled to a tax deduction for such gains. C. During 2017, 2020 and 2022, the Company granted 78,000, 86,000 and 16,000 RSUs respectively to certain of its directors, employees and consultants under the 2013 Plan. In relation to those grants: 1. The vesting period of the RSUs ranges between 2 to 3 years from the date of grant. 2. The fair value of RSUs is estimated based on the market value of the Company’s stock on the date of grant, less an estimate of dividends that will not accrue to RSUs holders prior to vesting. 3. The Company recognizes compensation expenses on these RSUs based on estimated grant date fair value, with the following assumptions: 2017 2020 2022 Expected dividend yield 2.68% 0% 0% D. On January 31, 2019, the Company granted, in the aggregate, 141,928 options to certain of its directors and employees under the 2013 Plan. In relation to this grant: 1. The exercise price for the options (per ordinary share) was US$ 33.83 and the Option expiration date was the earlier to occur of: (a) January 31, 2027; and (b) the closing price of the shares falling below US$ 16.92 at any time after the date of grant. The options vest and become exercisable on the second anniversary of the date of grant. 2. The Company recognizes compensation expenses on these options based on estimated grant date fair value using the Binomial option-pricing model with the following assumptions: Average Risk-free interest rate (a) 2.55% Expected dividend yield 0.0% Average expected volatility (b) 44.62% Termination rate 9% Suboptimal factor (c) 3.18 (a) Risk-free interest rate represents risk free US$ zero-coupon US Government Bonds at time of grant. (b) Expected average volatility represents a weighted average standard deviation rate for the price of the Company’s ordinary shares on the NASDAQ National Market. (c) Suboptimal factor represents the multiple of the increase in the market share price on the day of grant of the option which, should it come to pass, will lead to exercise of the option by the employee. It is the average suboptimal factor of the Company and similar companies. E. On June 8, 2020, the Company granted, in the aggregate, 148,426 options to certain of its directors and employees under the 2013 Plan. In relation to this grant: 1. The exercise price for the options (per ordinary share) was US$ 32.54 and the Option expiration date was the earlier to occur of: (a) June 8, 2028; and (b) the closing price of the shares falling below US$ 16.27 at any time after the date of grant. The options vest and become exercisable on the second anniversary of the date of grant. 2. The Company recognizes compensation expenses on these options based on estimated grant date fair value using the Binomial option-pricing model with the following assumptions: Average Risk-free interest rate (a) 0.75% Expected dividend yield 0.0% Average expected volatility (b) 45.29% Termination rate 9% Suboptimal factor (c) 3.16 (a) Risk-free interest rate represents risk free US$ zero-coupon US Government Bonds at time of grant. (b) Expected average volatility represents a weighted average standard deviation rate for the price of the Company’s ordinary shares on the NASDAQ National Market. (c) Suboptimal factor represents the multiple of the increase in the market share price on the day of grant of the option which, should it come to pass, will lead to exercise of the option by the employee. It is the average suboptimal factor of the Company and similar companies. F. On June 3, 2021, the Company granted, in the aggregate, 133,925 options to certain of its directors and employees under the 2013 Plan. In relation to this grant: 1. The exercise price for the options (per ordinary share) was US$ 41.84 and the Option expiration date was the earlier to occur of: (a) June 3, 2029; and (b) the closing price of the shares falling below US$ 20.92 at any time after the date of grant. The options vest and become exercisable on the second anniversary of the date of grant. 2. The Company recognizes compensation expenses on these options based on estimated grant date fair value using the Binomial option-pricing model with the following assumptions: Average Risk-free interest rate (a) 1.41% Expected dividend yield 0.0% Average expected volatility (b) 45.28% Termination rate 9% Suboptimal factor (c) 3.14 (a) Risk-free interest rate represents risk free US$ zero-coupon US Government Bonds at time of grant. (b) Expected average volatility represents a weighted average standard deviation rate for the price of the Company’s ordinary shares on the NASDAQ National Market. (c) Suboptimal factor represents the multiple of the increase in the market share price on the day of grant of the option which, should it come to pass, will lead to exercise of the option by the employee. It is the average suboptimal factor of the Company and similar companies. G. On January 27, 2022, the Company granted, in the aggregate, 121,508 options to certain of its employees under the 2013 Plan. In relation to this grant: 1. The exercise price for the options (per ordinary share) was US$ 47.98 and the Option expiration date was the earlier to occur of: (a) January 27, 2030; and (b) the closing price of the shares falling below US$ 23.99 at any time after the date of grant and remains in such price or in a lower price for a period of at least 30 days. The options vest and become exercisable on the second anniversary of the date of grant. 2. The Company recognizes compensation expenses on these options based on estimated grant date fair value using the Monte Carlo option-pricing model with the following assumptions: Average Risk-free interest rate (a) 1.79% Expected dividend yield 0.0% Average expected volatility (b) 44.38% Termination rate 9% Suboptimal factor (c) 3.16 (a) Risk-free interest rate represents risk free US$ zero-coupon US Government Bonds at time of grant. (b) Expected average volatility represents a weighted average standard deviation rate for the price of the Company’s ordinary shares on the NASDAQ National Market. (c) Suboptimal factor represents the multiple of the increase in the market share price on the day of grant of the option which, should it come to pass, will lead to exercise of the option by the employee. It is the average suboptimal factor of the Company and similar companies. H. On June 7, 2022, the Company granted, in the aggregate , 26,666 options to certain of its directors and employees under the 2013 Plan. In relation to this grant: 1. The exercise price for the options (per ordinary share) was US$ 35.69 and the Option expiration date was the earlier to occur of: (a) June 7, 2030; and (b) the closing price of the shares falling below US$ 17.85 at any time after the date of grant and remains in such price or in a lower price for a period of at least 30 days. The options vest and become exercisable on the second anniversary of the date of grant. 2. The Company recognizes compensation expenses on these options based on estimated grant date fair value using the Monte Carlo option-pricing model with the following assumptions: Average Risk-free interest rate (a) 3.01% Expected dividend yield 0.0% Average expected volatility (b) 43.93% Termination rate 9% Suboptimal factor (c) 3.14 (a) Risk-free interest rate represents risk free US$ zero-coupon US Government Bonds at time of grant. (b) Expected average volatility represents a weighted average standard deviation rate for the price of the Company’s ordinary shares on the NASDAQ National Market. (c) Suboptimal factor represents the multiple of the increase in the market share price on the day of grant of the option which, should it come to pass, will lead to exercise of the option by the employee. It is the average suboptimal factor of the Company and similar companies. I. On July 1, 2022, the Company granted, in the aggregate, 50,000 options to certain of its employee under the 2013 Plan. In relation to this grant: 1. The exercise price for the options (per ordinary share) was US$ 34.90 and the Option expiration date was the earlier to occur of: (a) July 1, 2030; and (b) the closing price of the shares falling below US$ 17.45 at any time after the date of grant and remains in such price or in a lower price for a period of at least 30 days. The options vest and become exercisable on the second anniversary of the date of grant. 2. The Company recognizes compensation expenses on these options based on estimated grant date fair value using the Monte Carlo option-pricing model with the following assumptions: Average Risk-free interest rate (a) 2.91% Expected dividend yield 0.0% Average expected volatility (b) 44.02% Termination rate 9% Suboptimal factor (c) 3.14 (a) Risk-free interest rate represents risk free US$ zero-coupon US Government Bonds at time of grant. (b) Expected average volatility represents a weighted average standard deviation rate for the price of the Company’s ordinary shares on the NASDAQ National Market. (c) Suboptimal factor represents the multiple of the increase in the market share price on the day of grant of the option which, should it come to pass, will lead to exercise of the option by the employee. It is the average suboptimal factor of the Company and similar companies. J. The following table summarizes information regarding stock options as at December 31, 2022: Options outstanding Options exercisable Weighted average Weighted average remaining remaining Exercise price Number contractual life Number contractual life US$ of options (in years) of options (in years) 26.91 18,141 0.6 18,141 0.6 33.27 14,865 3.3 14,865 3.3 28.38 23,699 1.4 23,699 1.4 39.62 66,343 2.1 66,343 2.1 36.11 72,212 3.3 72,212 3.3 33.83 62,418 4.1 62,418 4.1 32.54 107,037 5.4 107,037 5.4 41.84 115,758 6.4 - - 47.98 103,923 7.1 - - 35.69 26,666 7.4 - - 34.90 50,000 7.5 - - 661,062 364,715 The aggregate intrinsic value of options outstanding as of December 31, 2021 and 2022 is US$ 9,129 thousand and US$ 3,457 thousand, respectively. The aggregate intrinsic value of options exercisable as of December 31, 2021 and 2022 is US$ 5,300 thousand and US$ 2,887 thousand, respectively. The total intrinsic value of options exercised during the year ended December 31, 2021 and 2022, is US$ 2,334 thousand and US$ 600 thousand, respectively. K. The stock option activity under the abovementioned plans is as follows: Weighted Weighted average Number average grant date of options exercise price fair value US$ US$ Balance at January 1, 2020 465,247 Granted 148,426 32.54 14.82 Exercised (12,357 ) 22.38 8.63 Forfeited (11,269 ) 33.93 14.56 Balance at December 31, 2020 590,047 Granted 133,925 41.84 16.62 Exercised (132,702 ) 34.01 12.85 Forfeited (11,749 ) 35.79 15.39 Balance at December 31, 2021 579,521 Granted 198,174 40.82 15.13 Exercised (66,298 ) 33.09 13.21 Forfeited (50,335 ) 41.67 15.75 Balance at December 31, 2022 661,062 Exercisable at December 31, 2022 364,715 L. The Restricted Share Units activity under the abovementioned plans is as follows: Weighted Number of average Restricted grant date Share Units fair value US$ Balance at January 1, 2020 39,000 Granted 86,000 35.33 Vested (39,000 ) 34.43 Balance at December 31, 2020 86,000 Granted - - Vested - - Balance at December 31, 2021 86,000 Granted 16,000 43.02 Forfeited (2,000 ) 35.33 Vested (43,000 ) 35.33 Balance at December 31, 2022 57,000 The aggregate intrinsic value of RSUs outstanding as of December 31, 2021 and December 31, 2022 is US$ 4,438 thousand and US$ 2,403 thousand, respectively. M. During 2020, 2021 and 2022, the Company recorded share-based compensation expenses. The following summarizes the allocation of the stock-based compensation expenses: Year ended December 31 2020 2021 2022 US$ thousands Cost of sales 535 480 638 Research and development costs 959 1,011 1,454 Selling and marketing expenses 602 697 774 General and administrative expenses 615 674 711 2,711 2,862 3,577 As of December 31, 2022, there were US$ 3,994 thousand of unrecognized compensation costs related to outstanding stock options and RSUs to be recognized over a weighted average period of 1.2 years. The total tax benefit recognized in the consolidated statements of operations related to share based compensation expenses amounted to US$ 42 thousand and US$ 40 thousand for the year ended December 31, 2021 and December 31, 2022.

Geographic areas and major cust

Geographic areas and major customers	12 Months Ended
Geographic areas and major customers	Dec. 31, 2022
Geographic areas and major customers [Abstract]
Geographic areas and major customers	Note 13 - Geographic areas and major customers A. Information on sales by geographic distribution: The Company has one operating segment. Sales are attributed to geographic distribution based on the location of the ultimate customer: Year ended December 31 2020 2021 2022 US$ thousands USA 64,503 88,556 107,908 North America - other 639 964 836 Israel 12,362 9,936 13,586 Europe 23,208 19,383 20,715 Asia-Pacific 6,686 9,621 7,537 107,398 128,460 150,582 B. Year ended December 31 2020 2021 2022 US$ thousands Customer "A" 12,278 19,184 22,926 Customer "B" 13,468 7,788 8,519 Customer "C" 13,328 7,689 5,965 C. The following table presents the locations of the Company’s long-lived assets as of December 31, 2021 and 2022: Year ended December 31 2021 2022 US$ thousands North America 1,014 827 Europe 340 224 Israel 11,987 11,878 13,341 12,929

Financial Income (Expenses), Ne

Financial Income (Expenses), Net	12 Months Ended
Financial Income (Expenses), Net	Dec. 31, 2022
Other Income and Expenses [Abstract]
Financial Income (Expenses), Net	Note 14 - Financial Income (Expenses), Net Year ended December 31 2020 2021 2022 US$ thousands Interest income 2,197 1,548 1,144 Changes in marketable securities, net (244 ) (621 ) (914 ) Exchange rate differences, net (748 ) (1,031 ) 2,308 Bank charges (171 ) (48 ) (74 ) 1,034 (152 ) 2,464

Taxes on Income

Taxes on Income	12 Months Ended
Taxes on Income	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Taxes on Income	Note 15 - Taxes on Income A. Measurement of results for tax purposes under the Israeli Income Tax Regulations (Rules for Maintaining Accounting Records of Foreign Invested Companies and Certain Partnerships and Determining Their Taxable Income) - 1986 As a "foreign invested company" (as defined in the Israeli Law for the Encouragement of Capital Investments-1959), the taxable income or loss and the tax basis of assets and liabilities of the Company’s Israeli operations are denominated in US Dollars. B. Corporate tax rate in Israel The regular corporate tax rate applied to taxable income of Israeli companies is 23% (as from 2018 onwards). C. Tax benefits under the Israeli Law for the Encouragement of Capital Investments, 1959 (hereinafter - the "Law") 1. On December 29, 2010 the Knesset approved the Economic Policy Law for 2011-2012, which includes an Companies can choose to not be included in the scope of the Amendment to the Law and to stay in the scope of the law before its amendment until the end of the benefits period. Under the Amendment to the Law, upon an irrevocable election made by a company, a uniform corporate tax rate will apply to all preferred income of such company. The Company elected to apply the uniform corporate tax rate as of 2014. From 2017 onwards, the uniform tax rate is to be 7.5% in areas in Israel designated as Development Zone A and 16% elsewhere in Israel. The company has two facilities in Israel of which one of them is located in Development Zone A. The profits of these Preferred Companies will be freely distributable as dividends, subject to a withholding tax of 20% (or a lower rate under an applicable tax treaty). Should the Company derive income from sources other than the Preferred Company, such income will be taxable at the regular corporate tax rates for the applicable year. On December 29, 2016 the Israeli Parliament (the "Knesset") enacted the "Economic Efficiency Law (Legislative Amendments for Achieving Budget Objectives in the Years 2017 and 2018) – 2016" in which the Law was also amended (hereinafter: “the Amendment”). The Amendment added new tax benefit tracks for a “preferred technological enterprise” and a “special preferred technological enterprise” which award reduced tax rates to a technological industrial enterprise for the purpose of encouraging activity relating to the development of qualifying intangible assets. The benefits will be awarded to a “preferred company” that has a “preferred technological enterprise” or a “special preferred technological enterprise” with respect to taxable “preferred technological income” per its definition in the Law. Preferred technological income that meets the conditions required in the law, will be subject to a reduced corporate tax rate of %, and if the preferred technological enterprise is located in "Development Area A" in Israel - to a reduced tax rate of %. A company that owns a special preferred technological enterprise will be subject to a reduced corporate tax rate of % regardless of the development area in which the enterprise is located. The Amendment is effective as from January 1, 2017. On June 14, 2017 the Knesset Finance Committee approved "Encouragement of Capital Investment Regulations (Preferred Technological Income and Capital Gain of Technological Enterprise) – 2017" (hereinafter: “the Regulations”), which provides rules for applying the “preferred technological enterprise” and “special preferred technological enterprise” tax benefit tracks, including the Nexus formula that provides the mechanism for allocating the technological income eligible for the benefits. Should the Company derive income from sources other than the “preferred technological enterprise”, such income will be taxable at the "Preferred Company" tax rate (for manufacturing activity in Israel) or regular corporate tax rates for the applicable year. As a result of the aforesaid legislation, starting 2021 the Company implement the “preferred technological enterprise” tax benefit track. 2. In the event of distribution by the Company of dividends out of its retained earnings that were generated prior to the 2014 tax year and were tax exempt under the "Approved Enterprise" or "Benefited Enterprise" status, the Company would be subjected to a maximum of 25% corporate tax on the amount distributed, and a further 15% withholding tax would be deducted from the amounts distributed to the shareholders. Out of the Company’s retained earnings as of December 31, 2022, approximately US$ 49,612 thousand are tax-exempt, under our previous "Approved Enterprise" and "Benefited Enterprise" status. If such tax-exempt income is distributed as a dividend (including a liquidation dividend), it would be taxed at the regular corporate tax rate applicable to such profits (subject to a maximum rate of 25%) and an income tax liability of up to approximately US$ 12,403 thousand would be incurred as of December 31, 2022. The Company anticipates that any future dividends distributed pursuant to its dividend policy, will be distributed from income sources which will not impose additional tax liabilities on the Company. The Company intends to reinvest its tax-exempt income. Accordingly, no deferred tax liability has been recognized for income attributable to the Company’s previous "Approved Enterprise" or "Benefited Enterprise" status. If the Company was to declare a dividend from its tax-exempt income, an income tax expense would be recognized in the period a dividend is declared. On November 15, 2021, the Israeli Parliament released its 2021-2022 Budget Law (“2021 Budget Law”). The 2021 Budget Law introduces a new dividend ordering rule that apportions every dividend between previously tax-exempt and previously taxed income. Consequently, distributions (including deemed distributions as per Section 51(h)/51B of the Investment Law) may entail additional corporate tax liability to the distributing company. Effective August 15, 2021, dividend distributions will be treated as if made on a pro-rata basis from all types of earnings, including Exempt Profits. If such tax-exempt income is distributed, it would be taxed at the reduced corporate tax rate applicable to such income. D. Taxation of the subsidiaries 1. The subsidiary Silicom Inc. files tax returns with US federal tax authorities and with state tax authorities in the states of New Jersey, California, Virginia, New York, New Mexico, Tennessee, Texas and Illinois. The federal corporate income tax rate is 21% and the state corporate tax is approximately 9% in average. 2. The subsidiary Silicom Denmark is taxed according to the tax laws in Denmark, subject to corporate tax of 22%. 3. The The Company currently has no plans to repatriate those funds and intends to indefinitely reinvest them in its non-Israeli operations. The unrecognized deferred tax liability associated with these temporary differences was approximately US$ 1,822 thousand at December 31, 2022. E. Tax assessments 1. For the Israeli jurisdiction the Company has final tax assessments for all years up to and including the tax year ended December 31, 2017. 2. For the US federal jurisdiction, Silicom Inc. has final tax assessments for all years up to and including the tax year ended December 31, 2018. For the New Jersey and California state jurisdictions, Silicom Inc. has final tax assessments for all years up to and including the tax year ended December 31, 2017. For the Virginia, Tennessee, New York and New Mexico state jurisdictions, Silicom Inc. has final tax assessments for all years up to and including the tax year ended December 31, 2019. For the Texas state jurisdiction, Silicom Inc. has open tax assessments for the years 2018 through 2022. For the Illinois state jurisdiction, Silicom Inc. has open tax assessments for the years 2020 through 2022. 3. For the Danish jurisdiction, Silicom Denmark has final tax assessments for all years up to and including the tax year ended December 31, 2016. F. Income before income taxes and income taxes expense (benefit) included in the consolidated statements of operations Year ended December 31 2020 2021 2022 US$ thousands Income before income taxes: Israel 5,565 7,486 17,915 Foreign jurisdictions 1,717 5,419 4,475 7,282 12,905 22,390 Current taxes: Israel 1,260 1,281 1,765 Foreign jurisdictions 506 1,192 1,198 1,766 2,473 2,963 Current tax (benefits) expenses relating to prior years: Israel 50 (10 ) (215 ) Foreign jurisdictions (198 ) (147 ) 158 (148 ) (157 ) (57 ) Deferred taxes: Israel 8 174 1,114 Foreign jurisdictions (69 ) (126 ) 64 (61 ) 48 1,178 Income tax expense 1,557 2,364 4,084 G. Deferred tax assets and liabilities The tax effects of significant items comprising the Company’s deferred tax assets and liabilities are as follows: December 31 December 31 2021 2022 US$ thousands US$ thousands Deferred tax assets: Accrued employee benefits 420 362 Research and development costs 2,000 1,380 Share based compensation 427 391 Intangible assets 228 163 Operating lease liabilities 1,048 693 Other - 54 Total deferred tax assets 4,123 3,043 Deferred tax liabilities: Intangible assets (169 ) (357 ) Goodwill* (1,300 ) (1,511 ) Operating leases right-of-use, net (1,000 ) (747 ) Other (48 ) - Total deferred tax liabilities (2,517 ) (2,615 ) Net deferred tax assets 1,606 428 In Israel 1,616 502 Foreign jurisdictions (10 ) (74 ) Net deferred tax assets 1,606 428 Non-current deferred tax assets 1,616 502 Non-current deferred tax liabilities (10 ) (74 ) * The recognized goodwill is deductible for income tax purposes for 10 years. H. Reconciliation of the statutory tax expense to actual tax expense Year ended December 31 2020 2021 2022 US$ thousands Income before income taxes 7,282 12,905 22,390 Statutory tax rate in Israel 23.0 % 23.0 % 23.0 % 1,675 2,968 5,150 Increase (decrease) in taxes resulting from: Non-deductible operating expenses 508 395 566 Prior years adjustments (148 ) (157 ) (57 ) Tax effect due to "Preferred Enterprise" status (533 ) (577 ) (1,949 ) Statutory rate differential 105 (86 ) 168 Other (50 ) (179 ) 206 Income tax expense 1,557 2,364 4,084 I. Accounting for uncertainty in income taxes The accounting literature clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements. The standards prescribe a minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. It also requires significant judgment in determining what constitutes an individual tax position as well as assessing the outcome of each tax position. During 2020, 2021 and 2022 the Company and its subsidiaries did not have any significant unrecognized tax benefits and thus, no related interest and penalties were accrued. In addition, the Company and its subsidiaries do not expect that the amount of unrecognized tax benefits will change significantly within the next twelve months.

Subsequent Events

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	Note 16 - Subsequent Events In March 2023, the Company’s compensation committee and board of directors, respectively, has approved the grant of a total of 137,911 options and 86,000 RSUs under the Global Share Incentive Plan (2013), of which options and RSUs granted to directors and office holders are subject to the approval of the Annual General Meeting, which is currently scheduled to convene no later than June 2023, as prescribed under the Israeli Companies Law, 1999 and the Company's Amended and Restated Articles of Association.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2022
Accounting Policies [Abstract]
Financial statements in US dollars	A. Financial statements in US dollars Substantially all sales of the Company are made outside of Israel (see Note 13A regarding geographical distribution), in US dollars ("dollars"). Most purchases of materials and components, and a significant part of the marketing costs are made or incurred, primarily in dollars. Therefore, the dollar is the currency that represents the principal economic environment in which the Company operates and is thus its functional currency. Transactions and balances originally denominated in dollars are presented at their original amounts. Balances in non-dollar currencies are translated into dollars using historical and current exchange rates for non-monetary and monetary balances, respectively. For non-dollar transactions reflected in the statement of income (loss), the transaction date exchange rates are used. Depreciation, amortization and other changes deriving from non-monetary items are based on historical exchange rates. The resulting transaction gains or losses are recorded as net financial income or expenses.
Basis of presentation	B . Basis of presentation The accompanying consolidated financial statements have been prepared with accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Estimates and assumptions	C. Estimates and assumptions T he preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include revenue recognition over time, credit loss, income taxes, impairment of inventories, marketable securities, impairment of goodwill, intangible assets and the assumptions used to estimate the fair value of share-based compensation.
Cash and cash equivalents	D. Cash and cash equivalents The Company considers highly liquid investments with original maturities of three months or less from the date of deposit to be cash equivalents.
Short-term bank deposits	E. Short-term bank deposits Short term bank deposits consist of bank deposits with original maturities of more than three months and up to twelve months.
Marketable securities	F. Marketable securities The Company classifies its marketable securities as held-to-maturity as they are debt securities in which the Company has the intent and ability to hold to maturity. Held-to-maturity (HTM) debt securities are recorded at amortized cost adjusted for the amortization or accretion of premiums or discounts. Premiums and discounts on debt securities are amortized or accreted over the life of the related held-to-maturity security as an adjustment to yield using the effective interest method. Such amortization and accretion are included in the "Financial income, net" line item in the consolidated statements of operations. The Company recognizes current expected credit losses for financial assets held at amortized cost. The Company uses forward-looking information to calculate credit loss estimates.
Trade accounts receivable, net	G. Trade accounts receivable, net Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Amounts collected on trade accounts receivable are included in net cash provided by operating activities in the consolidated statements of cash flows. The Company presents accounts receivable in the consolidated balance sheets net of allowance for expected credit losses for potential uncollectible amounts. The Company estimates the collectability of accounts receivable balances and adjust the allowance for expected credit losses based on the Company's assessment of collectability by reviewing accounts receivable on an aggregated basis where similar characteristics exist and on an individual basis when it identifies specific customers with known disputes or collectability issues. The Company also considers a number of factors to assess collectability, including the past due status, creditworthiness of the specific customer, payment history and reasonable and supportable forecasts of future economic conditions. As of December 31, 2021 and 2022, allowance for credit losses amounted to US$ 20 thousand.
Inventories	H. Inventories Inventories are stated at the lower of cost and net realizable value. Cost is determined using the "weighted average-cost" method. The Company writes down obsolete or slow moving inventory to its net realizable value.
Assets held for employees' severance benefits	I. Assets held for employees’ severance benefits Assets held for employees’ severance benefits represent contributions to severance pay funds and cash surrender value of insurance policies. The assets are recorded at their current cash redemption value.
Property, plant and equipment	J. Property, plant and equipment Property, plant and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets at the following annual rates: % Machinery and equipment 15 - 33 Office furniture and equipment 6 - 33 Leasehold improvements * * Over the shorter term of the lease or the useful life of the asset
Goodwill and other intangible assets	K. Goodwill and other intangible assets Goodwill reflects the excess of the purchase price of business acquired over the fair value of net assets acquired. Goodwill is not amortized but instead is tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. The Company operates in one operating segment and this segment comprises one reporting unit. The Company may first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company performs a qualitative assessment and concludes that it is more likely than not that the fair value of a reporting unit exceeds its carrying value, goodwill is not considered impaired and the impairment test is not required. However, if the Company concludes otherwise, it is then required to perform a quantitative assessment for goodwill impairment. The Company performs its quantitative goodwill impairment test by comparing the fair value of its reporting unit with its carrying value. If the reporting unit’s carrying value is determined to be greater than its fair value, an impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit’s fair value. If the fair value of the reporting unit is determined to be greater than its carrying amount, the applicable goodwill is not impaired. Intangible assets that are not considered to have an indefinite useful life are amortized over their estimated useful lives in proportion to the economic benefits realized. This accounting policy results in amortization of such intangible assets in the straight-line method. For the years ended December 31, 2020, 2021 and 2022, no impairment losses were recorded.
Impairment of long-lived assets	L. Impairment of long-lived assets In accordance with Impairment or Disposal of long-lived assets Subsections of FASB ASC Subtopic 360-10, Property, Plant, and Equipment – Overall. Long-lived assets, such as property, plant, equipment and purchased intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or an asset group to be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying value. If the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying value exceeds its fair value. Fair value is determined through various valuation techniques including discounted cash flow models, quoted market values and third party independent appraisals, as considered necessary.
Leases	M. Leases The Company elected the short-term lease recognition exemption for all leases with a term shorter than 12 months. This means that for those leases, the Company does not recognize right-of-use ("ROU") assets or lease liabilities, but recognizes lease expenses over the lease term on a straight-line basis. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Leases are classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. As of December 31, 2022, all of the company's leases are operating leases. On the commencement date, the lease payments shall include variable lease payments that depend on an index (such as the Consumer Price Index), initially measured using the index at the commencement date. The Company does not remeasure the lease liability for changes in future lease payments arising from changes in an index unless the lease liability is remeasured for another reason. Therefore, after initial recognition, such variable lease payments are recognized in profit or loss as they are incurred. Variable payments that depends on use of the underlying asset are not included in the lease payments. Such variable payments are recognized in profit or loss in the period in which the event or condition that triggers the payment occurs. The Company’s incremental borrowing rate for a lease is the rate of interest that it would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. After lease commencement, the Company measures the lease liability at the present value of the remaining lease payments using the discount rate determined at lease commencement (as long as the discount rate hasn’t been updated as a result of a reassessment event). The Company subsequently measures the ROU asset at the present value of the remaining lease payments, adjusted for the remaining balance of any cumulative prepaid or accrued rent if the lease payments are uneven throughout the lease term. The Company’s lease agreements have remaining lease terms of 2 to 10 years. Some of these agreements include options to terminate the leases immediately. Some of our vehicle lease agreements include rental payments based on the actual usage of the vehicles and other lease agreements include rental payments adjusted periodically for inflation. The agreements related to leases in Israel are in Israeli Shekel ("ILS") or in ILS linked to the Israeli Consumer Price Index or to the US Dollars. The agreements related to leases in the USA are in US Dollars and the agreements related to leases in Denmark are in Danish Krone ("DKK"). The Company’s lease agreements do not contain any residual value guarantees. See Note 10.
Revenue recognition	N. Revenue recognition The Company derives revenues primarily from the sale of networking and data infrastructure solutions. The Company recognizes revenue upon transfer of control of the promised goods in a contract with a customer in an amount that reflects the consideration the Company expects to receive in exchange for those products. Transfer of control occurs once the customer has the contractual right to use the product, generally upon shipment or once delivery and risk of loss has transferred to the customer. The Company accounts for a contract with customer when it has approval and commitment from both parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Each of the Company's contracts includes one type of performance obligation. The Company evaluates each distinct performance obligation within a contract, whether it is satisfied at a point in time or over time. Most of the Company's revenues are recognized at a point in time. Revenue is recognized over time for sales of goods manufactured to unique customer specifications, in which the Company’s performance does not create an asset with an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date if the customer were to terminate the contract. Revenue recognized over time is measured by the costs incurred to date relative to the estimated total direct costs to fulfill each contract. Incurred costs represent work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Contract costs include labor, materials and overhead.
Cost of sales	O. Cost of sales Cost of sales consist primarily of production costs of finished goods manufactured by the company, with assistance of sub-contractors, from (i) components purchased from third parties, and (ii) sub-assemblies manufactured by sub-contractors under the Company’s directions and supervision as well as employee-related expenses and overhead expenses of the Company’s production lines.
Research and development costs and capitalized software development costs	P. Research and development costs and capitalized software development costs Software development costs (mainly salary) related to programmable components incorporated into the Company's products, are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. The Company has determined that technological feasibility for its software components of hardware products is reached after all high-risk development issues have been resolved through coding and testing. Amortization begins once the software is ready for its intended use, generally based on the pattern in which the economic benefits will be consumed. The amortization of these costs is included in cost of revenue over the estimated life of the products. Other costs incurred in the research and development of the Company’s products are expensed as incurred.
Allowance for product warranty	Q. Allowance for product warranty The Company grants assurance-type warranties related to certain products to end-users. The Company estimates its obligation for such warranties to be immaterial on the basis of historical experience. Accordingly, these financial statements do not include an accrual for warranty obligations.
Treasury shares	R. Treasury shares Treasury shares are recorded at cost and presented as a reduction of shareholders' equity. The Company reissues treasury shares under the Global Share Incentive Plan (2013), upon exercise of options and upon vesting of restricted stock units ("RSU"). Reissuance of treasury shares, based on the Company's policy of first-in, first-out (FIFO), is accounted for in accordance with ASC 505-30 whereby gains are credited to additional paid-in capital and losses are charged to additional paid-in capital to the extent that previous net gains are included therein and otherwise to retained earnings.
Income taxes	S. Income taxes Deferred taxes are accounted for under the asset and liability method based on the estimated future tax effects of temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases, and for operating loss and tax credit carryforwards. Deferred tax assets and liabilities are presented as non-current assets and liabilities and measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the consolidated statements of operations in the period that includes the enactment date. The Company recognizes the effect of uncertain tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured as the largest amount that is greater than 50 percent likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Taxes which would apply in the event of disposal of investments in foreign subsidiaries have not been taken into account in computing the deferred taxes, as the Company's intention is to hold, and not to realize the investments. As of December 31, 2022, the cumulative amount of earnings of foreign subsidiaries upon which deferred taxes have not been provided is approximately US$ 16.3 million. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable.
Share-based compensation	T. Share-based compensation The Company recognizes compensation expense based on estimated grant date fair value in accordance with ASC Topic 718, Compensation -Stock Compensation as follows: When portions of an award vest in increments during the requisite service period (graded-vesting award), the Company’s accounting policy is to recognize compensation cost for the award over the requisite service period for each separately vesting portion of the award. Equity awards granted to employees are accounted for using the grant date fair value method. The grant date fair value is determined as follows: for stock options using the Binomial option-pricing model and for restricted stock units (“RSUs”) based on the market value of the Company’s stock on the date of grant, less an estimate of dividends that will not accrue to RSUs holders prior to vesting. The fair value of share based payment awards is recognized as an expense over the vesting period. The expected average volatility represents a weighted average standard deviation rate for the price of the Company’s ordinary shares on the NASDAQ National Market. For awards with only market conditions, compensation expense is not reversed if the market conditions are not satisfied.
Basic and diluted earnings per share	U. Basic and diluted earnings per share B asic income per ordinary share is calculated by dividing the net income attributable to ordinary shares, by the weighted average number of ordinary shares outstanding (net of treasury shares). Diluted income per ordinary share calculation is similar to basic income per ordinary share except that the weighted average of ordinary shares outstanding is increased to include outstanding potential ordinary shares during the period if dilutive. Potential ordinary shares arise from stock options and RSUs, and the dilutive effect is reflected by the application of the treasury stock method. The following table summarizes information related to the computation of basic and diluted income per ordinary share for the years indicated. Year ended December 31 2020 2021 2022 Net income attributable to ordinary shares (US$ thousands) 5,725 10,541 18,306 Weighted average number of ordinary shares outstanding used in basic income per ordinary share calculation 7,118,244 6,825,630 6,696,671 Add of outstanding dilutive potential ordinary shares 38,519 143,172 99,748 Weighted average number of ordinary shares outstanding used in diluted income per ordinary share calculation 7,156,763 6,968,802 6,796,419 Basic income per ordinary shares (US$) 0.804 1.544 2.733 Diluted income per ordinary shares (US$) 0.800 1.513 2.694 Weighted average number of shares related to options and RSUs excluded from the diluted earnings per share calculation because of anti-dilutive effect 180,916 65,534 251,868
Comprehensive Income	V. Comprehensive Income For the years ended December 31, 2020, 2021 and 2022, comprehensive income equals net income.
Fair Value Measurements	W. Fair Value Measurements The Company's financial instruments consist mainly of cash and cash equivalents, marketable securities, trade and other receivables and trade accounts payable. The carrying amounts of these financial instruments, except for marketable securities, approximate their fair value because of the short maturity of these investments. The fair value of marketable securities is presented in Note 4 to these consolidated financial statements. Assets held for severance benefits are recorded at their current cash redemption value. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date. Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date.
Concentrations of risks	X. Concentrations of risks (1) Credit risk Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist principally of cash and cash equivalents, marketable securities, trade receivables and assets held for employees’ severance benefits. Cash and cash equivalents balances of the Company, which are subject to credit risk, consist of cash accounts held with major financial institutions. Marketable securities consist of held to maturity marketable securities issued by highly rated corporations. As of December 31, 2021 and 2022, the ratings of the securities in the Company's portfolio was at least A-. Nonetheless, these investments are subject to general credit and counterparty risks (such as that the counterparty to a financial instrument fails to meet its contractual obligations). The Company closely monitors extensions of credit and has never experienced significant credit losses. (2) Significant customers The Company's top four ultimate customers accounted for approximately 33% of its revenues in 2022. The Company expects that a small number of customers will continue to account for a significant portion of its revenues for the foreseeable future. See Note 13.
Liabilities for loss contingencies	Y. Liabilities for loss contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
Summary of Significant Accounting Policies (Tables)	Dec. 31, 2022
Accounting Policies [Abstract]
Schedule of Depreciation of Property, Plant and Equipment	% Machinery and equipment 15 - 33 Office furniture and equipment 6 - 33 Leasehold improvements * * Over the shorter term of the lease or the useful life of the asset
Schedule of Basic and Diluted Income Per Ordinary Share	Year ended December 31 2020 2021 2022 Net income attributable to ordinary shares (US$ thousands) 5,725 10,541 18,306 Weighted average number of ordinary shares outstanding used in basic income per ordinary share calculation 7,118,244 6,825,630 6,696,671 Add of outstanding dilutive potential ordinary shares 38,519 143,172 99,748 Weighted average number of ordinary shares outstanding used in diluted income per ordinary share calculation 7,156,763 6,968,802 6,796,419 Basic income per ordinary shares (US$) 0.804 1.544 2.733 Diluted income per ordinary shares (US$) 0.800 1.513 2.694 Weighted average number of shares related to options and RSUs excluded from the diluted earnings per share calculation because of anti-dilutive effect 180,916 65,534 251,868

Cash and Cash Equivalents (Tabl

Cash and Cash Equivalents (Tables)	12 Months Ended
Cash and Cash Equivalents (Tables)	Dec. 31, 2022
Cash and Cash Equivalents [Abstract]
Schedule of Cash and Cash Equivalents	December 31 2021 2022 US$ thousands Cash 25,368 24,016 Cash equivalents * 3,917 6,718 29,285 30,734 * Comprised mainly of bank deposits in ILS as at December 31, 2021 and 2022 carrying a weighted average interest rate of 0.03% and 3.10%, respectively.

Marketable Securities (Tables)

Marketable Securities (Tables)	12 Months Ended
Marketable Securities (Tables)	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Schedule of Held-to-Maturity Securities	Gross Gross unrealized unrealized Amortized holding holding Aggregate cost basis** gains (losses) fair value* US$ thousands At December 31, 2022 Held to maturity: Corporate debt securities and government debt securities Current 4,038 - (111 ) 3,927 Non-Current (1 to 3 years) 15,283 - (1,214 ) 14,069 19,321 - (1,325 ) 17,996 At December 31, 2021 Held to maturity: Corporate debt securities and government debt securities Current 8,300 43 (19 ) 8,324 Non-Current (1 to 4 years) 23,966 10 (512 ) 23,464 32,266 53 (531 ) 31,788 * Fair value is being determined using Level 2 inputs. ** Including accrued interest in the amount of US$ 227 thousand and US$ 138 thousand as of December 31, 2021 and 2022, respectively. The accrued interest is presented as part of other receivables on the balance sheet.
Schedule of Reconciliation of Marketable Securities	Activity in marketable securities in 2022 US$ thousands Balance at January 1, 2021 50,810 Purchases of marketable securities 19,927 Changes in marketable securities, net (621 ) Proceeds from maturity of marketable securities (37,850 ) Balance at January 1, 2022 32,266 Purchases of marketable securities 3,998 Changes in marketable securities, net (914 ) Proceeds from maturity of marketable securities (16,029 ) Balance at December 31, 2022 19,321
Schedule of Investment Securities in an Unrealized Loss Position	Less than 12 months 12 months or more Total Unrealized Losses Fair value Unrealized Losses Fair value Unrealized Losses Fair value Held to maturity: Corporate debt securities and government debt securities (301 ) 4,595 (1,024 ) 13,401 (1,325 ) 17,996

Other Receivables (Tables)

Other Receivables (Tables)	12 Months Ended
Other Receivables (Tables)	Dec. 31, 2022
Receivables [Abstract]
Schedule of Other Receivables	December 31 2021 2022 US$ thousands Advances to suppliers 333 421 Government authorities 2,184 1,437 Prepaid expense 768 936 Other receivables 1,408 826 4,693 3,620

Inventories (Tables)

Inventories (Tables)	12 Months Ended
Inventories (Tables)	Dec. 31, 2022
Inventory Disclosure [Abstract]
Schedule of Inventories	December 31 2021 2022 US$ thousands Raw materials and components 57,156 71,861 Products in process 11,186 12,417 Finished products 7,411 3,707 75,753 87,985

Property, Plant and Equipment_2

Property, Plant and Equipment, Net (Tables)	12 Months Ended
Property, Plant and Equipment, Net (Tables)	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment, Net	December 31 2021 2022 US$ thousands Machinery and equipment 17,305 19,298 Office furniture and equipment 1,129 1,190 Leasehold improvements 3,406 3,472 Property, plant and equipment 21,840 23,960 Accumulated depreciation (17,264 ) (19,472 ) Property, Plant and equipment, net 4,576 4,488

Intangible Assets (Tables)

Intangible Assets (Tables)	12 Months Ended
Intangible Assets (Tables)	Dec. 31, 2022
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Schedule of Net Intangible Assets	December 31 2021 2022 Useful life US$ thousands Original cost: Capitalization of software development costs 8 6,546 9,081 Licenses 3 565 633 7,111 9,714 Accumulated amortization: Capitalization of software development costs 2,366 2,431 Licenses 431 573 2,797 3,004 Intangible assets, net: Capitalization of software development costs 4,180 6,650 Licenses 134 60 4,314 6,710

Other accounts payable and ac_2

Other accounts payable and accrued expenses (Tables)	12 Months Ended
Other accounts payable and accrued expenses (Tables)	Dec. 31, 2022
Accounts Payable and Accrued Liabilities [Abstract]
Schedule of other accounts payable and accrued expenses	December 31 2021 2022 US$ thousands Accrued expenses 8,664 2,338 Employee benefits 6,562 5,958 Government authorities 577 663 Other payables 2,779 682 18,582 9,641

Leases (Tables)

Leases (Tables)	12 Months Ended
Leases (Tables)	Dec. 31, 2022
Leases [Abstract]
Schedule of Operating Lease Cost	Year ended December 31 2020 2021 2022 US$ thousands Operating lease costs (mainly plant and offices) 1,623 1,921 1,872 Variable lease payments not included in the lease liability 3 8 62 Short-term lease cost 285 278 273 Total operating lease cost 1,911 2,207 2,207
Schedule of Supplemental Cash Flow Information Operating Lease	Year ended December 31 2020 2021 2022 US$ thousands Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 1,601 1,887 1,847 Right-of-use assets obtained in exchange for lease liabilities (non-cash): Operating leases 7,201 451 1,269
Schedule of Supplemental Balance Sheet Information Operating Lease	December 31 2021 2022 US$ thousands Operating leases: Operating leases right-of-use 8,765 8,441 Current operating lease liabilities 1,811 1,549 Non-current operating lease liabilities 7,377 6,291 Total operating lease liabilities 9,188 7,840
Schedule of Additional Information Related to Operating Leases	December 31 2021 2022 US$ thousands Weighted average remaining lease term (years) 7.3 7.7 Weighted average discount rate 2.3 % 2.9 %
Schedule of Future Minimum Lease Payments	December 31, 2022 US$ thousands 2023 1,793 2024 1,477 2025 1,057 2026 1,006 After 2026 3,416 Total operating lease payments 8,749 Less: imputed interest (909 ) Present value of lease liabilities 7,840

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	12 Months Ended
Shareholders' Equity (Tables)	Dec. 31, 2022
Stockholders' Equity Note [Abstract]
Schedule of assumptions used in estimation of grant date fair value of RSUs	2017 2020 2022 Expected dividend yield 2.68% 0% 0%
Schedule of assumptions used in estimation of grant date fair value of options	Average Risk-free interest rate (a) 2.55% Expected dividend yield 0.0% Average expected volatility (b) 44.62% Termination rate 9% Suboptimal factor (c) 3.18 (a) Risk-free interest rate represents risk free US$ zero-coupon US Government Bonds at time of grant. (b) Expected average volatility represents a weighted average standard deviation rate for the price of the Company’s ordinary shares on the NASDAQ National Market. (c) Suboptimal factor represents the multiple of the increase in the market share price on the day of grant of the option which, should it come to pass, will lead to exercise of the option by the employee. It is the average suboptimal factor of the Company and similar companies. Average Risk-free interest rate (a) 0.75% Expected dividend yield 0.0% Average expected volatility (b) 45.29% Termination rate 9% Suboptimal factor (c) 3.16 (a) Risk-free interest rate represents risk free US$ zero-coupon US Government Bonds at time of grant. (b) Expected average volatility represents a weighted average standard deviation rate for the price of the Company’s ordinary shares on the NASDAQ National Market. (c) Suboptimal factor represents the multiple of the increase in the market share price on the day of grant of the option which, should it come to pass, will lead to exercise of the option by the employee. It is the average suboptimal factor of the Company and similar companies. Average Risk-free interest rate (a) 1.41% Expected dividend yield 0.0% Average expected volatility (b) 45.28% Termination rate 9% Suboptimal factor (c) 3.14 (a) Risk-free interest rate represents risk free US$ zero-coupon US Government Bonds at time of grant. (b) Expected average volatility represents a weighted average standard deviation rate for the price of the Company’s ordinary shares on the NASDAQ National Market. (c) Suboptimal factor represents the multiple of the increase in the market share price on the day of grant of the option which, should it come to pass, will lead to exercise of the option by the employee. It is the average suboptimal factor of the Company and similar companies. Average Risk-free interest rate (a) 1.79% Expected dividend yield 0.0% Average expected volatility (b) 44.38% Termination rate 9% Suboptimal factor (c) 3.16 (a) Risk-free interest rate represents risk free US$ zero-coupon US Government Bonds at time of grant. (b) Expected average volatility represents a weighted average standard deviation rate for the price of the Company’s ordinary shares on the NASDAQ National Market. (c) Suboptimal factor represents the multiple of the increase in the market share price on the day of grant of the option which, should it come to pass, will lead to exercise of the option by the employee. It is the average suboptimal factor of the Company and similar companies. Average Risk-free interest rate (a) 3.01% Expected dividend yield 0.0% Average expected volatility (b) 43.93% Termination rate 9% Suboptimal factor (c) 3.14 (a) Risk-free interest rate represents risk free US$ zero-coupon US Government Bonds at time of grant. (b) Expected average volatility represents a weighted average standard deviation rate for the price of the Company’s ordinary shares on the NASDAQ National Market. (c) Suboptimal factor represents the multiple of the increase in the market share price on the day of grant of the option which, should it come to pass, will lead to exercise of the option by the employee. It is the average suboptimal factor of the Company and similar companies. Average Risk-free interest rate (a) 2.91% Expected dividend yield 0.0% Average expected volatility (b) 44.02% Termination rate 9% Suboptimal factor (c) 3.14 (a) Risk-free interest rate represents risk free US$ zero-coupon US Government Bonds at time of grant. (b) Expected average volatility represents a weighted average standard deviation rate for the price of the Company’s ordinary shares on the NASDAQ National Market. (c) Suboptimal factor represents the multiple of the increase in the market share price on the day of grant of the option which, should it come to pass, will lead to exercise of the option by the employee. It is the average suboptimal factor of the Company and similar companies.
Schedule of Stock Option Summary	Options outstanding Options exercisable Weighted average Weighted average remaining remaining Exercise price Number contractual life Number contractual life US$ of options (in years) of options (in years) 26.91 18,141 0.6 18,141 0.6 33.27 14,865 3.3 14,865 3.3 28.38 23,699 1.4 23,699 1.4 39.62 66,343 2.1 66,343 2.1 36.11 72,212 3.3 72,212 3.3 33.83 62,418 4.1 62,418 4.1 32.54 107,037 5.4 107,037 5.4 41.84 115,758 6.4 - - 47.98 103,923 7.1 - - 35.69 26,666 7.4 - - 34.90 50,000 7.5 - - 661,062 364,715
Schedule of Stock Option Activity	Weighted Weighted average Number average grant date of options exercise price fair value US$ US$ Balance at January 1, 2020 465,247 Granted 148,426 32.54 14.82 Exercised (12,357 ) 22.38 8.63 Forfeited (11,269 ) 33.93 14.56 Balance at December 31, 2020 590,047 Granted 133,925 41.84 16.62 Exercised (132,702 ) 34.01 12.85 Forfeited (11,749 ) 35.79 15.39 Balance at December 31, 2021 579,521 Granted 198,174 40.82 15.13 Exercised (66,298 ) 33.09 13.21 Forfeited (50,335 ) 41.67 15.75 Balance at December 31, 2022 661,062 Exercisable at December 31, 2022 364,715
Schedule of Restricted Share Units activity	Weighted Number of average Restricted grant date Share Units fair value US$ Balance at January 1, 2020 39,000 Granted 86,000 35.33 Vested (39,000 ) 34.43 Balance at December 31, 2020 86,000 Granted - - Vested - - Balance at December 31, 2021 86,000 Granted 16,000 43.02 Forfeited (2,000 ) 35.33 Vested (43,000 ) 35.33 Balance at December 31, 2022 57,000
Schedule of Allocation of the Stock-Based Compensation Expenses	Year ended December 31 2020 2021 2022 US$ thousands Cost of sales 535 480 638 Research and development costs 959 1,011 1,454 Selling and marketing expenses 602 697 774 General and administrative expenses 615 674 711 2,711 2,862 3,577

Geographic areas and major cu_2

Geographic areas and major customers (Tables)	12 Months Ended
Geographic areas and major customers (Tables)	Dec. 31, 2022
Geographic areas and major customers [Abstract]
Schedule of Sales by Geographic Region	Year ended December 31 2020 2021 2022 US$ thousands USA 64,503 88,556 107,908 North America - other 639 964 836 Israel 12,362 9,936 13,586 Europe 23,208 19,383 20,715 Asia-Pacific 6,686 9,621 7,537 107,398 128,460 150,582
Schedule of Sales to Single Customers Exceeding 10% of Sales	Year ended December 31 2020 2021 2022 US$ thousands Customer "A" 12,278 19,184 22,926 Customer "B" 13,468 7,788 8,519 Customer "C" 13,328 7,689 5,965
Schedule of Locations of Company's Long Lived Assets - Property, Plant and Equipment	Year ended December 31 2021 2022 US$ thousands North America 1,014 827 Europe 340 224 Israel 11,987 11,878 13,341 12,929

Financial Income (Expenses), _2

Financial Income (Expenses), Net (Tables)	12 Months Ended
Financial Income (Expenses), Net (Tables)	Dec. 31, 2022
Other Income and Expenses [Abstract]
Schedule of Financial Income (Expenses), Net	Year ended December 31 2020 2021 2022 US$ thousands Interest income 2,197 1,548 1,144 Changes in marketable securities, net (244 ) (621 ) (914 ) Exchange rate differences, net (748 ) (1,031 ) 2,308 Bank charges (171 ) (48 ) (74 ) 1,034 (152 ) 2,464

Taxes on Income (Tables)

Taxes on Income (Tables)	12 Months Ended
Taxes on Income (Tables)	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Schedule of Income Before Income Taxes and Income Taxes Expense (Benefit) Included in The Consolidated Statements of Operations	Year ended December 31 2020 2021 2022 US$ thousands Income before income taxes: Israel 5,565 7,486 17,915 Foreign jurisdictions 1,717 5,419 4,475 7,282 12,905 22,390 Current taxes: Israel 1,260 1,281 1,765 Foreign jurisdictions 506 1,192 1,198 1,766 2,473 2,963 Current tax (benefits) expenses relating to prior years: Israel 50 (10 ) (215 ) Foreign jurisdictions (198 ) (147 ) 158 (148 ) (157 ) (57 ) Deferred taxes: Israel 8 174 1,114 Foreign jurisdictions (69 ) (126 ) 64 (61 ) 48 1,178 Income tax expense 1,557 2,364 4,084
Schedule of Deferred Tax Assets and Liabilities	December 31 December 31 2021 2022 US$ thousands US$ thousands Deferred tax assets: Accrued employee benefits 420 362 Research and development costs 2,000 1,380 Share based compensation 427 391 Intangible assets 228 163 Operating lease liabilities 1,048 693 Other - 54 Total deferred tax assets 4,123 3,043 Deferred tax liabilities: Intangible assets (169 ) (357 ) Goodwill* (1,300 ) (1,511 ) Operating leases right-of-use, net (1,000 ) (747 ) Other (48 ) - Total deferred tax liabilities (2,517 ) (2,615 ) Net deferred tax assets 1,606 428 In Israel 1,616 502 Foreign jurisdictions (10 ) (74 ) Net deferred tax assets 1,606 428 Non-current deferred tax assets 1,616 502 Non-current deferred tax liabilities (10 ) (74 ) * The recognized goodwill is deductible for income tax purposes for 10 years.
Schedule of Reconciliation of the Statutory Tax Expense to Actual Tax Expense	Year ended December 31 2020 2021 2022 US$ thousands Income before income taxes 7,282 12,905 22,390 Statutory tax rate in Israel 23.0 % 23.0 % 23.0 % 1,675 2,968 5,150 Increase (decrease) in taxes resulting from: Non-deductible operating expenses 508 395 566 Prior years adjustments (148 ) (157 ) (57 ) Tax effect due to "Preferred Enterprise" status (533 ) (577 ) (1,949 ) Statutory rate differential 105 (86 ) 168 Other (50 ) (179 ) 206 Income tax expense 1,557 2,364 4,084

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) Customer Segment Unit	Dec. 31, 2021 USD ($)
Property, Plant and Equipment [Line Items]
Provision for doubtful accounts	$ 20	$ 20
Number of major customers \| Customer	4
Percentage of revenue contributed by major customers	33%
Number of operating segments \| Segment	1
Number of reporting units \| Unit	1
Cumulative amount of earnings of foreign subsidiaries upon which deferred taxes not provided	$ 16,300
Minimum [Member]
Property, Plant and Equipment [Line Items]
Remaining lease terms	2 years
Maximum [Member]
Property, Plant and Equipment [Line Items]
Remaining lease terms	10 years

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Depreciation of Property, Plant and Equipment) (Details)	12 Months Ended
	Dec. 31, 2022
Machinery and equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Straight-line depreciation rate	15%
Machinery and equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Straight-line depreciation rate	33%
Office Furniture and Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Straight-line depreciation rate	6%
Office Furniture and Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Straight-line depreciation rate	33%
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Straight-line depreciation rate		[1]

[1]Over the shorter term of the lease or the useful life of the asset

Summary of Significant Accoun_6

Summary of Significant Accounting Policies (Computation of Basic and Diluted Income Per Ordinary Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Net income attributable to ordinary shares (US$ thousands)	$ 18,306	$ 10,541	$ 5,725
Weighted average number of ordinary shares outstanding used in basic income per ordinary share calculation	6,696,671	6,825,630	7,118,244
Add of outstanding dilutive potential ordinary shares	99,748	143,172	38,519
Weighted average number of ordinary shares outstanding used in diluted income per ordinary share calculation	6,796,419	6,968,802	7,156,763
Basic income per ordinary shares (US$)	$ 2.733	$ 1.544	$ 0.804
Diluted income per ordinary shares (US$)	$ 2.694	$ 1.513	$ 0.8
Weighted average number of shares related to options and RSUs excluded from the diluted earnings per share calculation because of anti-dilutive effect	251,868	65,534	180,916

Cash and Cash Equivalents (Deta

Cash and Cash Equivalents (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2022	Dec. 31, 2021
Cash and Cash Equivalents [Abstract]
Cash		$ 24,016	$ 25,368
Cash equivalents	[1]	6,718	3,917
Cash and cash equivalents		$ 30,734	$ 29,285
Weighted average interest rate of cash on deposit		3.10%	0.03%

[1]Comprised mainly of bank deposits in ILS as at December 31, 2021 and 2022 carrying a weighted average interest rate of 0.03% and 3.10%, respectively.

Marketable Securities (Held-To-

Marketable Securities (Held-To-Maturity Securities) (Details) - USD ($) $ in Thousands		Dec. 31, 2022		Dec. 31, 2021		Dec. 31, 2020
Schedule of Held-to-maturity Securities [Line Items]
Gross unrealized holding gains		$ 0		$ 53
Gross unrealized holding (losses)		(1,325)		(531)
Aggregate fair value	[1]	17,996		31,788
Amortized cost basis		19,321	[2]	32,266	[2]	$ 50,810
Accrued interest on securities		138		227
Current [Member]
Schedule of Held-to-maturity Securities [Line Items]
Gross unrealized holding gains		0		43
Gross unrealized holding (losses)		(111)		(19)
Aggregate fair value	[1]	3,927		8,324
Amortized cost basis	[2]	4,038		8,300
Non Current [Member]
Schedule of Held-to-maturity Securities [Line Items]
Gross unrealized holding gains		0		10
Gross unrealized holding (losses)		(1,214)		(512)
Aggregate fair value	[1]	14,069		23,464
Amortized cost basis	[2]	$ 15,283		$ 23,966

[1]Fair value is being determined using Level 2 inputs.[2]Including accrued interest in the amount of US$ 227 thousand and US$ 138 thousand as of December 31, 2021 and 2022, respectively.

Marketable Securities (Schedule

Marketable Securities (Schedule of Reconciliation of Marketable Securities) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022		Dec. 31, 2021		Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Balance	$ 32,266	[1]	$ 50,810
Purchases of marketable securities	3,998		19,927		$ 6,558
Changes in marketable securities, net	(914)		(621)		(244)
Proceeds from maturity of marketable securities	(16,029)		(37,850)		(16,629)
Balance	$ 19,321	[1]	$ 32,266	[1]	$ 50,810

[1]Including accrued interest in the amount of US$ 227 thousand and US$ 138 thousand as of December 31, 2021 and 2022, respectively.

Marketable Securities (Summary

Marketable Securities (Summary of Investment Securities in an Unrealized Loss Position) (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Investments, Debt and Equity Securities [Abstract]
Unrealized Losses, Less than 12 months	$ (301)
Unrealized Losses, 12 months or more	(1,024)
Unrealized Losses, Total	(1,325)
Fair value, Less than 12 months	4,595
Fair value, 12 months or more	13,401
Fair value, Total	$ 17,996

Other Receivables (Details)

Other Receivables (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Receivables [Abstract]
Advances to suppliers	$ 421	$ 333
Government authorities	1,437	2,184
Prepaid expense	936	768
Other receivables	826	1,408
Total other receivables	$ 3,620	$ 4,693

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials and components	$ 71,861	$ 57,156
Products in process	12,417	11,186
Finished products	3,707	7,411
Inventories	$ 87,985	$ 75,753

Inventories (Narrative) (Detail

Inventories (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
Inventories (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Inventory write-downs	$ 3,002	$ 5,246	$ 1,578

Property, Plant and Equipment_3

Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 23,960	$ 21,840
Accumulated depreciation	(19,472)	(17,264)
Property, Plant and equipment, net	4,488	4,576
Depreciation	2,208	2,009	$ 2,000
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	19,298	17,305
Office Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	1,190	1,129
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 3,472	$ 3,406

Intangible Assets (Schedule of

Intangible Assets (Schedule of net Intangible Assets) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Original cost	$ 9,714	$ 7,111
Accumulated amortization	3,004	2,797
Intangible assets, Net	6,710	4,314
Amortization expense	207	428	$ 378
Estimates amortization of capitalized software development costs	260			$ 247
Capitalization of software development costs [Member]
Finite-Lived Intangible Assets [Line Items]
Original cost	9,081	6,546
Accumulated amortization	2,431	2,366
Intangible assets, Net	$ 6,650	4,180
Useful life	8 years
Licenses [Member]
Finite-Lived Intangible Assets [Line Items]
Original cost	$ 633	565
Accumulated amortization	573	431
Intangible assets, Net	$ 60	$ 134
Useful life	3 years

Other accounts payable and ac_3

Other accounts payable and accrued expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Accounts Payable and Accrued Liabilities [Abstract]
Accrued expenses	$ 2,338	$ 8,664
Employee benefits	5,958	6,562
Government authorities	663	577
Other payables	682	2,779
Other accounts payable and accrued expenses	$ 9,641	$ 18,582

Leases (Schedule of Operating L

Leases (Schedule of Operating Lease Cost) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease costs (mainly plant and offices)	$ 1,872	$ 1,921	$ 1,623
Variable lease payments not included in the lease liability	62	8	3
Short-term lease cost	273	278	285
Total operating lease cost	$ 2,207	$ 2,207	$ 1,911

Leases (Schedule of Supplementa

Leases (Schedule of Supplemental Cash Flow Information Operating Lease) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating cash flows from operating leases	$ 1,847	$ 1,887	$ 1,601
Right-of-use assets obtained in exchange for lease liabilities (non-cash):
Operating leases	$ 1,269	$ 451	$ 7,201

Leases (Schedule of Supplemen_2

Leases (Schedule of Supplemental Balance Sheet Information Operating Lease) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Operating leases:
Operating leases right-of-use	$ 8,441	$ 8,765
Current operating lease liabilities	1,549	1,811
Non-current operating lease liabilities	6,291	7,377
Total operating lease liabilities	$ 7,840	$ 9,188
Weighted average remaining lease term (years)	7 years 8 months 12 days	7 years 3 months 18 days
Weighted average discount rate	2.90%	2.30%

Leases (Schedule of Future Mini

Leases (Schedule of Future Minimum Lease Payments) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
2023	$ 1,793
2024	1,477
2025	1,057
2026	1,006
After 2026	3,416
Total operating lease payments	8,749
Less: imputed interest	(909)
Total operating lease liabilities	$ 7,840	$ 9,188

Assets Held and Liability for_2

Assets Held and Liability for Employees' Severance Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Retirement Benefits [Abstract]
Severance costs	$ 1,194	$ 1,104	$ 986

Shareholders' Equity (Share Opt

Shareholders' Equity (Share Option Plan) (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Jan. 31, 2018	Dec. 31, 2022	Apr. 29, 2021	Apr. 30, 2020	May 02, 2019	Oct. 21, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Capital gains tax		25%
Value of shares authorized under one-year share repurchase plan					$ 15
Share Option Plan 2013 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized						500,000
Additional shares authorized	600,000
Board of Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Value of shares authorized under one-year share repurchase plan			$ 15	$ 15

Shareholders' Equity (RSUs Gran

Shareholders' Equity (RSUs Granted in 2017 and 2020) (Narrative) (Details) - Restricted Stock Units (RSUs) [Member] - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs grant	16,000	0	86,000	78,000
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period from date of grant	2 years		2 years	2 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period from date of grant	3 years		3 years	3 years

Shareholders' Equity (Stock Opt

Shareholders' Equity (Stock Options Granted in 2017 and 202020) (Narrative) (Details) - $ / shares					1 Months Ended		12 Months Ended
	Jul. 01, 2022	Jun. 07, 2022	Jun. 03, 2021	Jun. 08, 2020	Jan. 27, 2022	Jan. 31, 2019	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price of options							$ 40.82	$ 41.84	$ 32.54
Share Option Plan 2013 [Member] \| $33.83 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted						141,928
Exercise price of options						$ 33.83
Expiration date						Jan. 31, 2027
Closing price to determine expiration date						$ 16.92
Share Option Plan 2013 [Member] \| $32.54 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted				148,426
Exercise price of options				$ 32.54
Expiration date				Jun. 08, 2028
Closing price to determine expiration date				$ 16.27
Share Option Plan 2013 [Member] \| $41.84 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted			133,925
Exercise price of options			$ 41.84
Expiration date			Jun. 03, 2029
Closing price to determine expiration date			$ 20.92
Share Option Plan 2013 [Member] \| 47.98 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted					121,508
Exercise price of options					$ 47.98
Expiration date					Jan. 27, 2030
Closing price to determine expiration date					$ 23.99
Share Option Plan 2013 [Member] \| $35.69 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted		26,666
Exercise price of options		$ 35.69
Expiration date		Jun. 07, 2030
Closing price to determine expiration date		$ 17.85
Share Option Plan 2013 [Member] \| $34.90 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted	50,000
Exercise price of options	$ 34.9
Expiration date	Jul. 01, 2030
Closing price to determine expiration date	$ 17.45

Shareholders' Equity (Fair Valu

Shareholders' Equity (Fair Value Assumptions) (Details) - USD ($)						1 Months Ended		12 Months Ended
		Jul. 01, 2022	Jun. 07, 2022	Jun. 03, 2021	Jun. 08, 2020	Jan. 27, 2022	Jan. 31, 2019	Dec. 31, 2022	Dec. 31, 2020	Dec. 31, 2017
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected dividend yield								0%	0%	2.68%
$33.83 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average risk-free interest rate	[1]						2.55%
Expected dividend yield							0%
Average expected volatility	[2]						44.62%
Termination rate							9%
Suboptimal factor	[3]						3.18
$32.54 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average risk-free interest rate	[1]				0.75%
Expected dividend yield					0%
Average expected volatility	[2]				45.29%
Termination rate					9%
Suboptimal factor	[3]				3.16
$41.84 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average risk-free interest rate	[1]			1.41%
Expected dividend yield				0%
Average expected volatility	[2]			45.28%
Termination rate				9%
Suboptimal factor	[3]			3.14
$47.98 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average risk-free interest rate	[1]					1.79%
Expected dividend yield						0%
Average expected volatility	[2]					44.38%
Termination rate						9%
Suboptimal factor	[3]					3.16
$35.69 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average risk-free interest rate	[1]		3.01%
Expected dividend yield			0%
Average expected volatility	[2]		43.93%
Termination rate			9%
Suboptimal factor	[3]		3.14
$34.90 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average risk-free interest rate	[1]	2.91%
Expected dividend yield		0%
Average expected volatility	[2]	44.02%
Termination rate		9%
Suboptimal factor	[3]	3.14

[1]Risk-free interest rate represents risk free US$ zero-coupon US Government Bonds at time of grant.[2]Expected average volatility represents a weighted average standard deviation rate for the price of the Company’s ordinary shares on the NASDAQ National Market.[3]Suboptimal factor represents the multiple of the increase in the market share price on the day of grant of the option which, should it come to pass, will lead to exercise of the option by the employee. It is the average suboptimal factor of the Company and similar companies.

Shareholders' Equity (Stock O_2

Shareholders' Equity (Stock Option Summary) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding, number of options	661,062	579,521	590,047	465,247
Options exercisable, number of options	364,715
$26.91 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price US$	$ 26.91
Options outstanding, number of options	18,141
Options outstanding, weighted average remaining contractual life (in years)	7 months 6 days
Options exercisable, number of options	18,141
Options exercisable, weighted average remaining contractual life (in years)	7 months 6 days
33.27 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price US$	$ 33.27
Options outstanding, number of options	14,865
Options outstanding, weighted average remaining contractual life (in years)	3 years 3 months 18 days
Options exercisable, number of options	14,865
Options exercisable, weighted average remaining contractual life (in years)	3 years 3 months 18 days
28.38 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price US$	$ 28.38
Options outstanding, number of options	23,699
Options outstanding, weighted average remaining contractual life (in years)	1 year 4 months 24 days
Options exercisable, number of options	23,699
Options exercisable, weighted average remaining contractual life (in years)	1 year 4 months 24 days
39.62 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price US$	$ 39.62
Options outstanding, number of options	66,343
Options outstanding, weighted average remaining contractual life (in years)	2 years 1 month 6 days
Options exercisable, number of options	66,343
Options exercisable, weighted average remaining contractual life (in years)	2 years 1 month 6 days
$36.11 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price US$	$ 36.11
Options outstanding, number of options	72,212
Options outstanding, weighted average remaining contractual life (in years)	3 years 3 months 18 days
Options exercisable, number of options	72,212
Options exercisable, weighted average remaining contractual life (in years)	3 years 3 months 18 days
$33.83 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price US$	$ 33.83
Options outstanding, number of options	62,418
Options outstanding, weighted average remaining contractual life (in years)	4 years 1 month 6 days
Options exercisable, number of options	62,418
Options exercisable, weighted average remaining contractual life (in years)	4 years 1 month 6 days
32.54 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price US$	$ 32.54
Options outstanding, number of options	107,037
Options outstanding, weighted average remaining contractual life (in years)	5 years 4 months 24 days
Options exercisable, number of options	107,037
Options exercisable, weighted average remaining contractual life (in years)	5 years 4 months 24 days
$41.84 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price US$	$ 41.84
Options outstanding, number of options	115,758
Options outstanding, weighted average remaining contractual life (in years)	6 years 4 months 24 days
Options exercisable, number of options	0
Options exercisable, weighted average remaining contractual life (in years)
47.98 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price US$	$ 47.98
Options outstanding, number of options	103,923
Options outstanding, weighted average remaining contractual life (in years)	7 years 1 month 6 days
Options exercisable, number of options	0
Options exercisable, weighted average remaining contractual life (in years)
$35.69 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price US$	$ 35.69
Options outstanding, number of options	26,666
Options outstanding, weighted average remaining contractual life (in years)	7 years 4 months 24 days
Options exercisable, number of options	0
Options exercisable, weighted average remaining contractual life (in years)
$34.90 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price US$	$ 34.9
Options outstanding, number of options	50,000
Options outstanding, weighted average remaining contractual life (in years)	7 years 6 months
Options exercisable, number of options	0
Options exercisable, weighted average remaining contractual life (in years)

Shareholders' Equity (Intrinsic

Shareholders' Equity (Intrinsic Value of Stock Options) (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Stockholders' Equity Note [Abstract]
Aggregate intrinsic value of options outstanding	$ 3,457	$ 9,129
Aggregate intrinsic value of options exercisable	2,887	5,300
Total intrinsic value of options exercised	$ 600	$ 2,334

Shareholders' Equity (Stock O_3

Shareholders' Equity (Stock Option Activity) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Stockholders' Equity Note [Abstract]
Options, beginning balance	579,521	590,047	465,247
Options, granted	198,174	133,925	148,426
Options, exercised	(66,298)	(132,702)	(12,357)
Options, forfeited	(50,335)	(11,749)	(11,269)
Options, ending balance	661,062	579,521	590,047
Options, exercisable	364,715
Weighted average exercise price, granted	$ 40.82	$ 41.84	$ 32.54
Weighted average exercise price, exercised	33.09	34.01	22.38
Weighted average exercise price, forfeited	41.67	35.79	33.93
Weighted average grant date fair value, granted	15.13	16.62	14.82
Weighted average grant date fair value, exercised	13.21	12.85	8.63
Weighted average grant date fair value, forfeited	$ 15.75	$ 15.39	$ 14.56

Shareholders' Equity (Schedule

Shareholders' Equity (Schedule Of Restricted Share Units Activity) (Details) - RSUs [Member] - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2017
Number of Restricted Share Units
Restricted Share Units, beginning balance	86,000	86,000	39,000
Restricted Share Units, granted	16,000	0	86,000	78,000
Restricted Share Units, forfeited	(2,000)
Restricted Share Units, vested	(43,000)	0	(39,000)
Restricted Share Units, ending balance	57,000	86,000	86,000
Weighted average grant date fair value
Weighted average grant date fair value, granted	$ 43.02	$ 0	$ 35.33
Weighted average grant date fair value, Forfeited	35.33
Weighted average grant date fair value, vested	$ 35.33	$ 0	$ 34.43

Shareholders' Equity (Intrins_2

Shareholders' Equity (Intrinsic Value of Restricted Share Units) (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate intrinsic value of RSUs outstanding	$ 2,403	$ 4,438

Shareholders' Equity (Summary o

Shareholders' Equity (Summary of Allocation of Stock-Based Compensation Expenses) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 3,577	$ 2,862	$ 2,711
Unrecognized compensation costs related to outstanding stock options and RSUs	$ 3,994
Unrecognized compensation costs related to outstanding stock options and RSUs, period for recognition	1 year 2 months 12 days
Tax benefit recognized in the consolidated statements of operations related to share based compensation expenses	$ 40	42
Cost of sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	638	480	535
Research and development costs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	1,454	1,011	959
Selling and marketing expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	774	697	602
General and administrative expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 711	$ 674	$ 615

Geographic areas and major cu_3

Geographic areas and major customers (Sales By Geographic Region) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales attributable based on geographic location	$ 150,582	$ 128,460	$ 107,398
USA [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales attributable based on geographic location	107,908	88,556	64,503
North America - other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales attributable based on geographic location	836	964	639
Israel [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales attributable based on geographic location	13,586	9,936	12,362
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales attributable based on geographic location	20,715	19,383	23,208
Asia-Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Sales attributable based on geographic location	$ 7,537	$ 9,621	$ 6,686

Geographic areas and major cu_4

Geographic areas and major customers (Sales to Single Customers Exceeding 10% of Sales) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenue, Major Customer [Line Items]
Sales	$ 150,582	$ 128,460	$ 107,398
Customer A [Member]
Revenue, Major Customer [Line Items]
Sales	22,926	19,184	12,278
Customer B [Member]
Revenue, Major Customer [Line Items]
Sales	8,519	7,788	13,468
Customer C [Member]
Revenue, Major Customer [Line Items]
Sales	$ 5,965	$ 7,689	$ 13,328

Geographic areas and major cu_5

Geographic areas and major customers (Schedule of Locations of Company's Long Lived Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]
Long lived assets	$ 12,929	$ 13,341
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long lived assets	827	1,014
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long lived assets	224	340
ISRAEL
Revenues from External Customers and Long-Lived Assets [Line Items]
Long lived assets	$ 11,878	$ 11,987

Financial Income (Expenses), _3

Financial Income (Expenses), Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Other Income and Expenses [Abstract]
Interest income	$ 1,144	$ 1,548	$ 2,197
Changes in marketable securities, net	(914)	(621)	(244)
Exchange rate differences, net	2,308	(1,031)	(748)
Bank charges	(74)	(48)	(171)
Financial income, net	$ 2,464	$ (152)	$ 1,034

Taxes on Income (Narrative) (De

Taxes on Income (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Line Items]
Tax rate	23%	23%	23%
Federal corporate income tax rate	21%
State corporate income tax rate	9%
Corporate tax on cash dividends distributed from exempted profits	25%
Withholding tax deduction from cash dividends distributed from benefited profits	20%
Capital Gains Tax	25%
Non-Israeli subsidiaries' undistributed earnings for which Company has not provided for Israeli income and foreign withholding taxes	$ 8,702
Assumed deferred tax liability attributable to taxable temporary differences from non-Israeli subsidiaries'' undistributed earnings	$ 1,822
Corporate tax rate	22%
Preferred Enterprise [Member]
Income Tax Disclosure [Line Items]
Reduction in corporate tax rate	12%
Preferred Enterprise [Member] \| Development Area A [Member]
Income Tax Disclosure [Line Items]
Corporate statutory tax rate on 2017 and thereafter	7.50%
Reduction in corporate tax rate	7.50%
Preferred Enterprise [Member] \| Rest Of Country [Member]
Income Tax Disclosure [Line Items]
Corporate statutory tax rate on 2017 and thereafter	16%
Reduction in corporate tax rate	6%
Israel Tax Reform [Member]
Income Tax Disclosure [Line Items]
Corporate statutory tax rate on 2018 and thereafter	23%
Corporate statutory tax rate on 2016	25%
Beneficial Enterprise [Member]
Income Tax Disclosure [Line Items]
Tax exemption	$ 49,612
Assumed income tax liability	$ 12,403

Taxes on Income (Income Before

Taxes on Income (Income Before Income Taxes and Income Taxes Expense (Benefit) Included in the Consolidated Statements of Operations) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Income before income taxes, Israel	$ 17,915	$ 7,486	$ 5,565
Income before income taxes, foreign jurisdictions	4,475	5,419	1,717
Income before income taxes	22,390	12,905	7,282
Current taxes, Israel	1,765	1,281	1,260
Current taxes, foreign jurisdictions	1,198	1,192	506
Current taxes	2,963	2,473	1,766
Current tax (benefits) expenses relating to prior years, Israel	(215)	(10)	50
Current tax (benefits) expenses relating to prior years, foreign jurisdictions	158	(147)	(198)
Current tax (benefits) expenses relating to prior years	(57)	(157)	(148)
Deferred taxes, Israel	1,114	174	8
Deferred taxes, foreign jurisdictions	64	(126)	(69)
Deferred taxes	1,178	48	(61)
Income tax expense	$ 4,084	$ 2,364	$ 1,557

Taxes on Income (Deferred Tax A

Taxes on Income (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands		Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets:
Accrued employee benefits		$ 362	$ 420
Research and development costs		1,380	2,000
Share based compensation		391	427
Intangible assets		163	228
Operating lease liabilities		693	1,048
Other		54	0
Total deferred tax assets		3,043	4,123
Deferred tax liabilities:
Intangible assets		(357)	(169)
Goodwill	[1]	(1,511)	(1,300)
Operating leases right-of-use, net		(747)	(1,000)
Other		0	(48)
Total deferred tax liabilities		(2,615)	(2,517)
Net deferred tax assets		428	1,606
In Israel		502	1,616
Foreign jurisdictions		(74)	(10)
Net deferred tax assets		428	1,606
Non-current deferred tax assets		502	1,616
Non-current deferred tax liabilities		$ (74)	$ (10)

[1]The recognized goodwill is deductible for income tax purposes for 10 years.

Taxes on Income (Reconciliation

Taxes on Income (Reconciliation of Statutory Tax Expense To Actual Tax Expense) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income before income taxes	$ 22,390	$ 12,905	$ 7,282
Statutory tax rate in Israel	23%	23%	23%
Computed expected tax	$ 5,150	$ 2,968	$ 1,675
Non-deductible operating expenses	566	395	508
Prior years adjustments	(57)	(157)	(148)
Tax effect due to "Preferred Enterprise" status	(1,949)	(577)	(533)
Statutory rate differential	168	(86)	105
Other	206	(179)	(50)
Income tax expense	$ 4,084	$ 2,364	$ 1,557
Basic	$ 2.733	$ 1.544	$ 0.804
Diluted	$ 2.694	$ 1.513	$ 0.8

Subsequent Events (Narrative) (

Subsequent Events (Narrative) (Details) - Global Share Incentive Plan (2013) [Member] - Subsequent Event [Member]	1 Months Ended
	Mar. 31, 2023 shares
Options [Member]
Subsequent Event [Line Items]
Options and RSU approved for grant during period not yet issued	137,911
RSUs [Member]
Subsequent Event [Line Items]
Options and RSU approved for grant during period not yet issued	86,000