Saudi Arabia Launches US$266 Million Fund to Attract Chip Design Firms

The Kingdom of Saudi Arabia has set a bold target to attract 50 chip design firms by the year 2030 as part of the ambitious Saudi Vision 2030 program spearheaded by Crown Prince Mohammed. This initiative aims to position Saudi Arabia as a key player in the global semiconductor industry, which is projected to reach a value of US$1 trillion in the near future.

At the third annual The Future of Semiconductors Forum 2024 in Riyadh, the formation of the National Semiconductor Hub was officially announced. The event, hosted by King Abdulaziz City for Science and Technology (KACST) in collaboration with King Abdullah University of Science and Technology (KAUST), served as a platform to unveil this strategic move.

During the forum, Mohammed Al Otaibi, acting head of the Saudi Research Development and Innovation Authority (RDIA), emphasized the importance of Saudi Arabia's participation in the semiconductor industry's growth on both regional and global scales. This underscores the kingdom's commitment to fostering innovation and technological advancement.

Naveed Sherwani, the chair and CEO of EDA company Rapid Silicon, has been appointed to lead the National Semiconductor Center. Sherwani revealed that three companies have already committed to the initiative, with an additional seven expressing strong interest in joining. He also highlighted the establishment of a fund, backed by deep tech venture capitalists, to support companies looking to establish a presence in the emerging Silicon Valley.

Furthermore, Saudi Arabia recently launched Alat, a US$100 billion investment firm dedicated to targeting semiconductor and other deep tech industries. The firm, established in February, aims to create 39,000 direct non-oil jobs within the kingdom. This significant investment underscores Saudi Arabia's determination to diversify its economy and embrace cutting-edge technologies.