#SaudiArabia’s Chip Design Ambitions Take Shape With New Hub - Bloomberg

Saudi Arabia’s Chip Design Ambitions Take Shape With New Hub - Bloomberg

Saudi Arabia launched a new strategy aimed at making itself a hub for semiconductor design as the country looks to develop the industry as a means to diversify its economy away from crude oil.

The kingdom announced the National Semiconductor Hub Wednesday to develop so-called fabless chip companies that design new semiconductors.

The goal is to draw 50 firms to the kingdom by 2030 and the focus will be on simple chips — rather than cutting-edge and politically-sensitive technologies — and manufacturing will be done internationally, at least in the medium-term, according to Naveed Sherwani, head of the new hub.

“We’re not trying to replace Nvidia or challenge Intel,” said Sherwani, who spoke to Bloomberg on the sidelines of the Future of Semiconductors Forum in Riyadh. “We want to do humble beginnings. Once we have built a base, then we can talk.”

The initiative underscores the increasing importance of semiconductors for Saudi Arabia as Crown Prince Mohammed bin Salman seeks to tap into new industries that will help the country draw in more revenue from non-oil activities.