Davos 2024: Saudi PIF Eyes Big Investment to Kick Off Foray Into Semiconductors - Bloomberg
Saudi Arabia’s sovereign wealth fund is planning to make big investments in both the semiconductor and space industries this year as the kingdom accelerates efforts to diversify its economy away from oil.
The Public Investment Fund is looking at making a “sizable investment” this year into the semiconductor industry, Saudi Minister of Communications and Information Technology Abdullah Alswaha said in an interview at the World Economic Forum in Davos. “They plan to make an announcement on a particular champion within the space to lead the Saudi efforts,” he said, declining to give further details.
Alswaha, who is chairman of the kingdom’s Space Agency as well, said the fund will also look to create a national space company to invest and acquire assets in that sector. The space industry is “ripe right now” for M&A, he said.
The fund, known as PIF, has emerged as one of the key parts of Crown Prince Mohammed Bin Salman’s plan to shake up the Saudi economy and wean it off a reliance on oil sales. It has rapidly built up assets of around $700 billion after a spending spree on everything from electric carmakers to backing upstart golf tournaments, and plans to control $1 trillion by 2025.
One of its key initiatives has been to develop an auto manufacturing hub on the West coast of the kingdom. US EV maker Lucid Group Inc. is already assembling cars from the site, and is set to be joined by Hyundai Motor Co. and Ceer, a brand created by the PIF. The plan involves developing downstream industries that’s expected to also include making semiconductors and batteries.
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