For faster growth, the country has even unleashed billions of dollars of investment funds and also formed the National Semiconductor Hub
Following the footsteps of India, China, Europe, and China, the middle-east country Saudi Arabia is also undertaking various initiatives to emerge as a global powerhouse in semiconductors. Since the COVID-19 pandemic, semiconductors have created geopolitical war among several nations and tech tycoons. Taiwan is now leading the industry with 46 percent of the world’s foundry capacity, which is then followed by China, South Korea, the US, and Japan.
The semiconductor supply chain, which is highly concentrated, has aroused Saudi Arabia to invest in domestic semiconductor manufacturing under its vision 2030 initiative. In an interaction with the Arab News, Frederic Ozeir, partner and head of Automotive and Manufacturing Industries for India, Middle-East, and Africa region at Oliver Wyman, said “Semiconductors are the foundation of modern technology and crucial for economic growth, representing a $500 billion industry today, projected to reach $1 trillion by 2030. For a modern economy, they (semiconductors) are fundamental to nearly all electronics across key sectors like computing, telecom, energy, automotive, and healthcare.”
The $100 billion Alat project is expected to be a game-changer in the Kingdom’s economy. The project aspires to tackle the escalating domestic demand and help the country become a global powerhouse of chip production and innovation. Alat, in association with King Abdulaziz City for Science and Technology, is completely focused on boosting the infrastructure of chip design and manufacturing, and domestic talent.
For faster growth, the country has even unleashed billions of dollars of investment funds and also formed the National Semiconductor Hub. By 2030, it is expected that around 50 chip design firms will start their operation. Commenting on the financial benefits from the semiconductor industry, economist Talat Zaki Hafiz, said, “The semiconductor industry will contribute significantly to both the Kingdom’s economy and the industrial sector in general, especially as Saudi Arabia is engaging and promoting several industries that require significant and sizable amounts of semiconductors.”
