Saudi Arabia Launches $266 Million Investment Fund for Semiconductor Development

Saudi Arabia has introduced a 1 billion-riyal ($266.6 million) investment fund for the semiconductor industry, in addition to establishing a national center.

The goal of this initiative is to support the creation of 50 design companies and to train 5,000 engineers by 2030.

The announcement was made during the "Semiconductor Forum 2024" held on June 5-6. The National Semiconductor Hub aims to secure over 150 million riyals ($40 million) from the National Information Technology Development Program and attract 25 global experts through a special residency program.

Through this initiative, Saudi Arabia aims to position itself as a global hub for semiconductor markets, capitalizing on its strategic location.

Naveed Sherwani, CEO of Rapid Silicon, emphasized the kingdom’s accessibility advantage, enabling businesses to connect with countries like Taiwan and Korea and access diverse markets.

Sherwani highlighted the significance of semiconductor design firms, which are essential for various sectors such as smartphones, tablets, automobiles, healthcare, and education.

He stressed the role of semiconductors in enhancing national sovereignty, stating that the launch of the hub aims to meet Saudi Arabia’s sovereignty needs and demonstrate the Kingdom’s high competitiveness in this field.

Regarding the Semiconductor Forum 2024, officials underscored its importance in bringing together decision-makers, industry leaders, experts, and researchers in semiconductor technologies.

This aligns with the Kingdom’s objectives in digital economy, artificial intelligence, and technology localization.

Deputy President of King Abdulaziz City for Science and Technology (KACST) for the Energy and Industry sector, Saeed Al-Shahri, informed Asharq Al-Awsat that the forum aims to convene experts, scientists, and decision-makers to discuss and localize these technologies in the Kingdom.

Saudi Arabia aims to have 500,000 electric cars by 2030, with approximately 40% relying on electronic chips or semiconductors.

Al-Shahri mentioned that the Kingdom has targets in the realms of digital economy, artificial intelligence, and technology localization.