The new oil… Electronic chips

By: Mohammed Hassan Mohammed Al-Naimi

Semiconductors are solid materials that possess unique electrical properties, as they are partially conductive, which makes them suitable for making electronic chips, and one of the most important materials used in their manufacture is silicon, which is an essential element in the modern electronics industry.

The semiconductor and chip industry is the lifeblood of our modern world, as it is the beating heart that powers electronic devices, the engine of innovation that drives progress, and the economic tributary that secures the desired resource.

Electronic chips are used in every aspect of our daily lives, from telecommunications to industry, from vehicles to airplanes and from smartphones to computers… It contributes to the development of new technologies such as artificial intelligence, and is an essential element for national security, and is used in many sensitive systems, such as defense systems and weapons, and is an essential element for the national security of countries, however, this industry faces challenges, such as increasing complexity, global shortages and dependence on a small number of manufacturers.

If it were not for these small chips, our life would not be at the level of development that it is now, they are the operator of our electrical devices of various shapes and sizes, and one of the main elements in the transportation industry, and are also used in the manufacture of solar panels and many others.

The shortage of chips has caused devastation in many industries, so the major industrialized countries are making obvious efforts to invest in the semiconductor industry, which some promise to be the “new oil”.

The value of the chip and semiconductor industry in 2023 was estimated at 600 billion dollars, making it one of the largest industries in the world that employs millions of people, and contributes significantly to the GDP of many countries.

The intensifying rivalry between the United States and China on the global stage, and electronic chips, known as semiconductors, have become a major focus in this battle, and although the United States accounts for 25% of the total demand for them, their total manufacturing capacity does not exceed 12%, down from 37% in the nineties, and this fact has raised concerns about the threat to national security due to China’s efforts to gain a significant foothold in this vital industry, and the United States is striving to revitalize the domestic chip industry, while resorting to sanctions to limit China’s aspirations for self-sufficiency in this vital industry the critical area.

Major countries led by the United States and the European Union in 2023 allocated state aid of almost 81 billion dollars for the production of the next generation, which led to an escalation of the global confrontation with China over dominance in the chip sector.

Countries and companies are competing in the production of smaller, cheaper and faster chips for more powerful and affordable technological devices. the world of chip manufacturing includes world-famous companies as well as small suppliers that are difficult to know outside their narrow specialization market. their chips are essential inputs for manufacturers of technology devices and industrial equipment.

The crisis of smart chips in addition to the US-China conflict has made Countries aware of the importance of relying on themselves in the production of these chips, the kingdom of Saudi Arabia revealed through its vision “Kingdom Vision 2030”, that there is a golden opportunity to enter this market and sell smart chips to China, which needs a lot of them to feed its factories, but before you export you must reach self-sufficiency of smart chips.

In March 2022, Saudi Arabia created a program, the first of its kind in the Middle East, aimed at localizing the technology of electronic chip manufacturing, which is relied on by many industries, primarily electric vehicles, and also in June last year, King Abdulaziz City for science and technology “kaxt”, China Electric Power Equipment and technology company, and Beijing Microelectronics Technology Company signed a memorandum of understanding to establish a center for the design and manufacture of electronic chips.

The Saudi semiconductor program (SSP) seeks to focus on a national strategic plan to qualify human cadres in the field of electronic chip design and localization, which is in line with the goals of participating institutions and in line with the vision of the kingdom ٢٠٣٠ the kingdom expects many benefits from the localization of electronic chips and the technical capabilities of semiconductors in various sectors, such as the digital economy, the automotive industry and defense manufacturing.

The long-term strategic and technological direction, which the kingdom of Saudi Arabia has set for itself, will make it a key player in the field of technology and technology, will contribute strongly to diversifying sources of national income, will create many jobs in a direct and indirect way, will create a generation that keeps pace with manufacturing, programming, technology, artificial intelligence, big data, robots and drones, and what we are witnessing today of a qualitative leap in the level of electronic services for government agencies, made Saudi Arabia a “smart government” that provides quality services efficiently that facilitated the life of citizens, residents and visitors.