MUSCAT: Oman has taken a major step toward becoming a hub for artificial intelligence (AI) chip manufacturing, with the Ministry of Transport, Communications, and Information Technology (MoTCIT) signing a Memorandum of Understanding (MoU) to develop an advanced chips and semiconductors project in the Salalah Free Zone.
The agreement, signed with EONH Private Holdings and supported by regional and international investment funds, aims to establish a high-tech semiconductor industry in Oman. The project will focus on designing and manufacturing AI chips, creating opportunities for local talent, and attracting top international expertise from key semiconductor markets such as Taiwan, South Korea, and Japan.
Dr. Ali bin Amer al Shidhani, Under-Secretary for Communications and Information Technology at MoTCIT, emphasised that the initiative aligns with Oman’s Digital Industry Program, a key component of the National Program for Digital Economy under Oman Vision 2040. He highlighted that investing in semiconductor manufacturing will strengthen Oman’s position in the global AI and microelectronics sector, attracting further investments and boosting local innovation.
“The global semiconductor industry is projected to reach $1 trillion by 2030, driven by growing demand for AI, Internet of Things (IoT), 5G, and autonomous vehicle technologies,” Al Shidhani stated, citing McKinsey & Company.
Ali Steve Chao, Chairman of EONH Private Holdings, noted that Oman’s strategic location and investment-friendly environment were key factors in selecting it for the project. “We aim to enhance manufacturing capabilities, from high-performance memory solutions to next-generation AI chips, positioning Oman as a key player in this rapidly evolving industry,” he said.
Chao added that the company is committed to attracting top global talent to make Oman a center for semiconductor innovation. The project is set to commence operations three years after its establishment. — ONA
