Muscat – The Ministry of Transport, Communications, and Information Technology has signed a Memorandum of Understanding (MoU) with AONH Private Holdings to develop an advanced semiconductor and AI chip project in the Salalah Free Zone.

This agreement marks a critical milestone in Oman’s push to develop cutting-edge technologies in the semiconductor field.

The project, which will be based in the Salalah Free Zone in the Dhofar Governorate, aims to manufacture semiconductor chips designed for next-generation AI applications. These chips are expected to power technologies such as self-driving vehicles, AI training, and other advanced digital innovations.
The MoU was signed by His Excellency Dr. Ali Amir Al Shidhani, Undersecretary for Communications and Information Technology, and Ali Steve Chao, Chairman of AONH Private Holdings. The partnership is set to contribute significantly to building national expertise in semiconductor design and manufacturing, while simultaneously creating new business opportunities for Omani youth and attracting international talent from countries at the forefront of semiconductor technologies, including Taiwan, South Korea, and Japan.

H.E. Dr. Al Shidhani emphasised that this project is in line with the Digital Industry Program, a cornerstone initiative under Oman’s National Digital Economy Program and Vision 2040. The project will not only position Oman as a regional and global leader in semiconductor design and advanced packaging technologies but also boost local technological innovation and research in microelectronics.

The rapid global growth of the semiconductor and microchip market, driven by surging demand for AI, the Internet of Things (IoT), 5G networks, and autonomous driving technologies, further underscores the importance of the new venture. According to McKinsey & Company, the global semiconductor market is forecasted to reach USD 1 trillion by 2030, prompting the Ministry to focus on training Omani talent in semiconductor-related skills through collaborations with universities and international institutes.
Ali Steve Chao, Chairman of AONH Private Holdings, expressed his excitement about the partnership, noting that Oman’s strategic location, investment-friendly environment, and robust infrastructure were key factors in their decision to invest in the project. He highlighted the potential for the Salalah Free Zone facility to become a global hub for semiconductor manufacturing, AI chip production, and data center innovation.