Saudi Arabia Semiconductor Market Size | 2019-2032

Saudi Arabia Semiconductor Market Growth and Performance

• The Saudi Arabia semiconductor market size in 2032 will be US$ 25.41 Billion, with a forecasted Compound Annual Growth Rate (CAGR) of 14.2% from 2024 to 2032.
• The Saudi Arabia semiconductor industry achieved US$ 7.49 Billion in 2023.

Saudi Arabia Semiconductor Market Outlook

The Saudi Arab semiconductor market is rapidly evolving, driven by strategic investments, government initiatives, and international collaborations. As part of its Vision 2030 initiative, Saudi Arabia is heavily investing in developing local semiconductor manufacturing capabilities to reduce dependency and enhance economic diversification. The Kingdom aims to position itself as a global hub for semiconductor innovation and production, contributing to the broader goal of transforming its economy beyond oil dependence. The outlook for the Saudi Arab semiconductor market is highly promising. The launch of the National Semiconductor Hub is a pivotal initiative that aims to attract over SR1 billion ($266.6 million) in investment for the design of electronic chips. The hub's objectives include establishing 50 semiconductor companies, attracting 25 international semiconductor experts, and creating over 5,000 jobs by 2030. With strategic initiatives like the Alalat project and partnerships with global technology leaders, Saudi Arabia is on track to become a competitive player in the global semiconductor supply chain. The Kingdom's strategic location and strong financial backing further enhance its potential to attract international semiconductor companies.

Saudi Arabia Semiconductor Market Growth

The growth trajectory of the Saudi Arab semiconductor market is underpinned by robust financial commitments and strategic projects. The industry is projected to reach a global market value of $XX trillion by 2032, with Saudi Arabia aiming to capture a significant share of this expanding market. One of the standout investments is the $100 billion Alat project, led by Saudi Arabia’s wealth fund, which focuses on developing local talent and building the infrastructure necessary for semiconductor design and manufacturing. Additionally, Saudi Arabia's $1.5 billion investment in Groq, a Silicon Valley-based AI chip startup, is a notable step toward enhancing its AI and semiconductor capabilities. This investment will support Groq's expansion in Saudi Arabia, including a major data center in Dammam and collaboration with Aramco Digital to establish a prominent AI hub in the region.

Saudi Arabia Semiconductor Market Trends

Several key trends are shaping the Saudi Arabia semiconductor market:

• Strategic Investments: The $100 billion Alat project is central to developing local semiconductor talent and infrastructure. Saudi Arabia's $1.5 billion commitment to Groq for AI chip development also highlights the Kingdom's focus on cutting-edge technologies.
• National Semiconductor Hub: The establishment of the National Semiconductor Hub is crucial for building a local design ecosystem and supporting the growth of semiconductor companies in the region.
• Global Collaborations: Saudi Arabia is working with international research institutes and universities, such as King Abdulaziz City for Science and Technology (KACST) and King Abdullah University of Science and Technology (KAUST), to enhance R&D and innovation in the semiconductor industry.
• Focus on Talent Development: The National Semiconductor Hub aims to train 5,000 engineers and bring 25 world-class experts to Saudi Arabia by 2030, ensuring a skilled workforce for the semiconductor industry.

Saudi Arabia Semiconductor Market Competitive Landscape

The competitive landscape of the Saudi Arab semiconductor market is evolving with increasing participation from both local and international players. Initiatives like the National Semiconductor Hub and the Alalat project provide a strong foundation for new and existing semiconductor companies to thrive. Strategic collaborations with global companies such as Groq and partnerships with educational institutions like KAUST are driving technological advancements. The involvement of Aramco Digital in AI chip development further enhances Saudi Arabia's position in the semiconductor market.

Saudi Arabia Semiconductor Industry Development

Saudi Arabia semiconductor industry development strategy involves significant investments in research and development, talent acquisition, and infrastructure projects. The establishment of the National Semiconductor Hub is a critical milestone in this strategy, focusing on localization and creating a robust semiconductor design ecosystem. Saudi Arabia's investment fund, valued at up to SAR 1 billion, is dedicated to supporting semiconductor companies planning to operate in the Kingdom. Additionally, the Future of Semiconductors Forum 2023, hosted by KAUST, showcased Saudi Arabia's progress in semiconductor research and development, emphasizing sustainable manufacturing and global collaboration.

Saudi Arabia Semiconductor Market Scope