The sultanate is set to start an advanced artificial intelligence (AI) semiconductor chip manufacturing project in Salalah Free Zone, Dhofar following a memorandum of understanding (MoU) signed recently.
The agreement, between Ministry of Transport, Communications and Information Technology (MTCIT) and AONH Private Holdings, is supported by regional and international investment funds.
The project aims to consolidate Oman’s position in the global semiconductor industry, addressing the rising demand for AI technologies. It will also help develop local expertise in chip design and manufacturing, while attracting international talent, particularly from Taiwan, South Korea and Japan.
H E Dr Ali bin Amer al Shidhani, Undersecretary for Communications and Information Technology in MTCIT, stated that the project aligns with the Digital Industry Programme under the National Programme for Digital Economy and Oman Vision 2040. “This project will contribute to attracting new investments in the semiconductor industry, stimulating local technical innovation and advancing research in microelectronics. It will support economic growth, technological progress and sustainable development in Oman,” he said.
He noted that the global semiconductor industry is expanding rapidly, driven by increasing demand for AI, the Internet of Things, 5G networks and autonomous driving technologies. According to global management consultants McKinsey, the market is expected to reach US$1tn valuation by 2030.
Ali Steve Chao, Chairman of AONH Private Holdings, highlighted Oman’s strategic location and investor-friendly environment as key factors in selecting the country for the project. “With this initiative, Oman is set to make its mark on the world stage of chip manufacturing, developing advanced memory solutions and next-generation AI chips,” he said.
He added that the company aims to attract top global talent, creating a hub for researchers, engineers and developers to drive innovation in semiconductor manufacturing, data centres and AI industries. Production operations are expected to begin three years after the project’s launch.