Saudi Arabia and India Collaborate to Boost Semiconductor Manufacturing
Riyadh — Saudi Arabia is actively engaging with India to establish semiconductor manufacturing capabilities within the Kingdom, as reported by Saudi analyst Salman Al-Ansari. This strategic collaboration aims to leverage India’s expertise in semiconductor production to enhance Saudi Arabia’s technological infrastructure and economic diversification efforts.
India’s semiconductor market is experiencing significant expansion. According to the India Electronics and Semiconductor Association (IESA), the market is projected to grow from $52 billion in 2024 to $103.4 billion by 2030, driven by sectors such as mobile handsets, information technology, telecommunications, consumer electronics, automotive, aerospace, and defense.
Notably, mobile handsets, IT, and industrial applications account for almost 70% of the semiconductor industry’s revenue and are expected to continue as the main contributors to growth.
Saudi Arabia’s Vision 2030 and Semiconductor Initiatives
Under Saudi Arabia’s Vision 2030 initiative, the Kingdom is making substantial investments to develop local semiconductor manufacturing capabilities, aiming to reduce dependency on external sources and enhance economic diversification. A key component of this strategy is the establishment of the National Semiconductor Hub, which has received an initial investment of $266 million. This initiative seeks to attract international semiconductor companies and cultivate a domestic industry capable of supporting Saudi Arabia’s technological growth.
Launched in 2016, Vision 2030 is Saudi Arabia’s ambitious roadmap to transform its economy and society. The initiative focuses on three primary pillars: a vibrant society, a thriving economy, and an ambitious nation. By diversifying its economy away from oil dependence, Vision 2030 aims to create a sustainable and innovative environment that fosters growth across various sectors, including technology, manufacturing, and services.
Strategic Collaboration with India
Saudi Arabia’s collaboration with India in the semiconductor sector is a strategic initiative aimed at leveraging India’s established expertise to bolster Saudi Arabia’s technological capabilities. Indian professionals have a significant presence in the global technology sector, particularly in Silicon Valley, where they have been instrumental in driving innovation and managing major tech companies.
This partnership is expected to facilitate knowledge transfer, technology sharing, and joint ventures, positioning Saudi Arabia as a competitive player in the global semiconductor market. Recent discussions between Saudi Industry Minister Bandar Alkhorayef and India’s TATA Group leaders underscore the potential for cooperation in various sectors, including electronics, which could further strengthen this collaboration.
By leveraging India’s expertise and Saudi Arabia’s investment initiatives, this partnership is poised to strengthen the semiconductor industry in the Middle East and contribute to the stability and growth of global supply chains. The ongoing efforts to establish a robust semiconductor ecosystem within Saudi Arabia align with the Kingdom’s Vision 2030 objectives, aiming to position the nation as a global hub for technology and innovation.
