Page 6 - EE Times Europe Magazine - June 2025

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How Egypt, Saudi Arabia, and Oman Are Building the Middle East’s Chip Future

· Analog Devices, Cisco, Capgemini, Arrow, and others operate National Semiconductor Hub (NSH) with an initial investment of
engineering centers in Egypt, working on ASIC design, embedded $266 million. The initiative aims to attract at least 50 fabless semi-
systems, and next-generation automotive technologies. conductor design companies to the kingdom by 2030, laying the
groundwork for a vibrant, export-oriented design ecosystem. The NSH
A thriving local fabless ecosystem offers targeted financial incentives, fast-track regulatory support, and
The fabless semiconductor and embedded systems companies operat- infrastructure tailored to semiconductor startups and global corpora-
ing in Egypt today span a spectrum of activities. Some build products tions alike.
based on their own innovations, others develop high-value IP, and As of May 2025, 20 companies working across a range of technol-
many offer design services to international clients: ogies, from advanced AI to MEMS and photonics, were in various
· Si-Ware Systems, now a global name in chip-scale spectrometry, stages of relocating facilities to Saudi Arabia or establishing opera-
was the pioneer. tions there. At the Future of Semiconductors Forum—hosted by King
· Pearl Semiconductor, a spinoff of Si-Ware, specializes in advanced Abdullah University of Science and Technology (KAUST)—the NSH
timing solutions and reference clock ICs. and the Research, Development and Innovation Authority announced
· InfiniLink, a recent addition to the ecosystem, is developing high- the creation of a $500 million venture capital fund, managed by Apex
speed serializer/deserializer and optical transceivers and has raised FundRock, to provide early-stage funding and growth support for the
more than $10 million in seed funding. chosen fabless semiconductor companies.
· Si-Vision, closely aligned with Synopsys, designs advanced RF IP
cores—including Bluetooth and Zigbee—used in devices worldwide. Building the foundations: research, innovation, and clean rooms
· ICpedia, Pulsar Micro, and OrionX focus on chip design services, Saudi Arabia’s ambitions are anchored in the capabilities of two world-
supporting clients with everything from architecture to physical class research institutions: KAUST and KACST, both of which offer
design and verification. cutting-edge infrastructure to support R&D in semiconductors and
related fields.
Embedded software and automotive innovation At KAUST, the Nanofabrication Core Lab provides access to a clean
Complementing semiconductor hardware, Egypt’s embedded software room measuring 2,000 square meters and certified to Class 1000
sector is thriving, particularly in automotive applications. Prominent (ISO 6) standards, with Class 100 (ISO 5) zones for critical processes.
companies such as Brightskies, Avelabs, and Garraio have grown The facility supports research in wide-bandgap semiconductors, MEMS,
significantly and today provide advanced software solutions for global photonics, biomedical devices, and advanced microelectronics. The
automotive suppliers. Multinational automotive player Valeo has Advanced Semiconductor Laboratory at KAUST houses metal-organic
expanded its embedded systems development team in Egypt, leverag- chemical-vapor deposition reactors and other specialized tools essen-
ing local talent for high-end automotive technologies. tial for wide-bandgap and optoelectronic device development.
In Riyadh, KACST leads national efforts in applied semiconductor
Global recognition and industry collaborations research through the National Capability Center for Semiconductors.
In 2022, the Global Semiconductor Alliance (GSA) recognized Egypt’s This center offers more than 3,600 square meters of clean room space
strategic importance by opening a regional office in Cairo, its first and to support local chip design, prototyping, and advanced packaging.
only such office outside the U.S., Europe, and Far East. Since its launch, Recognizing the need to bridge research and entrepreneurship, KACST
GSA Egypt has organized two Executive Forums, drawing high-profile also launched the Ignition Incubator, a dedicated program for semi-
attendees from leading global companies, local startups, investors, conductor startups, at The Garage, one of the largest tech startup hubs
and government stakeholders. These events have provided a platform in the Middle East. Home to more than 300 startups, The Garage offers
for cross-border collaboration, dealmaking, and strategic discussions a vibrant support environment, with training, lab access, and investor
around Egypt’s potential in the global semiconductor value chain. networks to help semiconductor startups scale quickly.

SAUDI ARABIA: BUILDING A SEMICONDUCTOR POWERHOUSE Driving industrialization through Alat and the manufacturing leap
Over the past three years, Saudi Arabia has made a clear and ambitious Saudi Arabia is also looking downstream, toward manufacturing.
push to become a regional leader in semiconductor technology. This That’s where Alat comes in. Backed by the Public Investment Fund and
effort is deeply tied to the kingdom’s broader economic transformation launched with a budget of $100 billion, Alat is tasked with transform-
under Vision 2030, which positions semiconductors not just as a new ing Saudi Arabia into a high-tech manufacturing destination.
industry focus but as a strategic pillar for building a knowledge-based Alat isn’t just about chips. It’s focused on semiconductors but also
economy and reducing dependence on oil revenues. on smart devices, healthcare tech, industrial equipment, and smart
infrastructure. Its mission is clear: Attract top-tier global companies
A national strategy with a clear intent to manufacture in the kingdom, tapping into the country’s access to
At the heart of Saudi Arabia’s semiconductor ambitions lies a affordable renewable energy, its strategic location, and its massive
coordinated strategy aligned with Vision 2030. The government has investments in infrastructure and logistics.
prioritized technological advancement, innovation, and industrial A notable early success is Alat’s $2 billion partnership with Lenovo,
localization, placing the semiconductor sector at the center of its which is set to begin laptop and server production in Saudi Arabia by
national development goals. 2026, a milestone in localizing high-value tech manufacturing.
In March 2022, the kingdom launched the Saudi Semiconductors
Program (SSP), a foundational initiative designed to strengthen The human factor
national capabilities in chip design and the localization of semicon- Understanding that talent is at the core of any successful semiconduc-
ductor technology development and production. SSP also supports tor strategy, Saudi Arabia is emphasizing human capital development.
academic research, chip simulation, and layout tools across uni- The kingdom is actively building local expertise through partnerships
versities, and it provides services for chip packaging, testing, and with global universities, hands-on training programs, and research
characterization through King Abdulaziz City for Science and fellowships. At the same time, it is working to attract global semicon-
Technology (KACST) labs. ductor experts to help build and mentor the next generation of Saudi
Building on this momentum, in 2024, Saudi Arabia launched the engineers and researchers.

JUNE 2025 | www.eetimes.eu