Saudi Arabia’s Semiconductor Investment: A Tradition of Innovation
Saidi Arabia is actively pursuing the attraction of global chipmakers and semiconductor design companies to establish their presence in the Kingdom.
This strategic move is part of Saudi Arabia’s broader plan to nationalize chip manufacturing and foster innovation on a global scale.
Efforts by the Kingdom:
In 2022, Saudi Arabia launched the Saudi Semiconductor Program (SSP), also known as Ignition, with the aim of nurturing research and developing talent in electronic chip design.
The program was announced during the opening session of the “Future of Semiconductor Forum 2022” held in Riyadh.
The Head of the Research Institute at KAUST highlighted the vital role of nationalizing electronic chips and semiconductors in achieving the goals of Saudi Arabia’s 2030 Vision.
The SSP is a unique program in the region that aims to provide Saudi university students with electronic chip design tools. Moreover, King Abdulaziz City for Science and Technology (KACST) and King Abdullah University for Science and Technology (KAUST) annually organize the “Future of Semiconductor Forum,” which discusses the significance of electronic chip manufacturing for enhancing the kingdom’s economy.
Earlier this year, KACST signed a strategic cooperation agreement with CDT Limited to finance electronic chip manufacturing programs and provide design support.
Deals and Partnerships:
The Institute also partnered with Stalroweave Technical Chip Design to develop high-speed wireless communications and silicon semiconductor sensing solutions.
Additionally, the Kingdom announced the establishment of the “National Semiconductor Hub” during the “Future of Semiconductors Forum 2024” in Riyadh.
The hub aims to attract 25 experts in the field and train approximately 5,000 engineers in semiconductor design.
Saudi Arabia plans to establish 50 semiconductor design companies by 2030 through the National Semiconductor Hub.
Naveed Sherwani, Head of the National Hub, stated that the purpose of the hub is to provide incentives, training programs, and financing to welcome companies from around the world.
Royal Attention:
In February 2024, Saudi Crown Prince Mohammed bin Salman launched Allat Company, one of the companies under the Public Investment Fund. The company’s establishment aims to enhance the capabilities of Saudi Arabia’s technical sector.
Crown Prince Mohammed bin Salman aims to increase the Kingdom’s ability to create investment opportunities through the manufacturing and export of electronic chips.
Allat Company specializes in producing products that serve local and global markets across various strategic business units.
Reasons and Results:
Saudi Arabia’s semiconductor investment is a proactive response to potential limitations on chip exports to the Middle East by the United States.
By implementing these strategies, the Kingdom is positioning itself for regional leadership in advanced technology.
Saudi Arabia envisions the creation of data centers, artificial intelligence companies, and semiconductor manufacturing facilities, with the ultimate goal of fostering economic growth and technological advancement.
By: Omnia Osama
