Gov’t sets up SAR 1 bn deep tech VC fund to drive semiconductor industry

The Kingdom launched a SAR 1 bn deep tech VC fund to attract and support semiconductor companies to set up shop in Saudi, AlEqtisadiah reports.

The goal: To see 50 semiconductor firms of various sizes and descriptions operating here by 2030. The tool: Special (as-yet unspecified) incentives.

Introducing the National Semiconductor Hub: The government is setting up the National Semiconductor Hub, which will be used “to develop so-called fabless chip companies that design new semiconductors,” according to Bloomberg. The government hopes to attract 25 experts and 5k engineers specialized in semiconductor design, with a focus on simple chips, rather than advanced technology, the business information service writes.

Not going after Nvidia or Intel — yet. “We’re not trying to replace Nvidia or challenge Intel. We want to do humble beginnings. Once we have built a base, then we can talk,” Naveed Sherwani told Bloomberg on the sidelines of a conference.

But Alat, the PIF’s advanced technologies unit, sees a world where Saudi could produce 1 mn wafers by 2030, generating some USD 10 bn in revenues. “That may set Alat up to eventually be involved in conversations around how new chip design companies in Saudi Arabia can manufacture at home,” Bloomberg suggests.

ICYMI- The Kingdom plans to make strides in semiconductors this year: Communications and Information Technology Minister and chairman of the Space Agency, Abdullah Alsawaha previously told Bloomberg that the PIF is looking to boost its semiconductors and space investments this year in an interview back in January. Additionally, Alat, the advanced manufacturing investment platform launched earlier this year by the Public Investment Fund (PIF), opened the doors at two units focused on electrification and AI infrastructure, last month.