Within A global race over microchip market… Saudi Arabia enters the arena

Amidst escalating geopolitical and economic tensions, the microchip sector emerges as one of the most vital and rapidly growing sectors in the world, with the global microchip market estimated at around $600 billion in 2024, and expected to exceed $800 billion by 2030. These chips are the cornerstone of modern technology, as they are included in every electronic device, from smartphones and computers to smart cars and medical devices, making control of this industry a strategic issue of utmost importance. At the heart of this global struggle are American companies such as Nvidia, Intel and TSMC, which are racing to develop advanced technologies and expand their market share. Nvidia, for example, has a market share of about 80% in the graphics processor market, while Intel ranks first in the computer processor market with a market share of about 60% to 65%. On the other hand, TSMC dominates the custom chip manufacturing market with a share of 55% to 60%. As this global competition escalates, Saudi Arabia is beginning to chart its own path in this strategic field. Driven by Vision 2030, the Kingdom is taking serious steps towards entering the electronic chip market, relying on huge investments in infrastructure development and research and development. Saudi Arabia seeks to attract foreign investment and enhance its industrial capabilities through strategic partnerships with global companies, in addition to investing in education and training to prepare a new generation of specialists in this field. At the same time, China continues its intensive efforts to build its technological capabilities Private companies such as HiSilicon and Xiaomi are seeking to reduce their dependence on Western technologies, which is exacerbating trade and technological tensions between China and the United States. China is the main competitor in this race, as it is investing heavily in developing new technologies to counter Western dominance. As part of this strategy, Saudi Arabia launched a fund worth one billion riyals to invest in companies working in semiconductors, which aims to promote and encourage small and medium-sized startups to adopt this industry. The Kingdom also launched the “Alat” company to support the leadership of the transformation in global sectors, including the electronics and industrial sectors. “Alat” aims to create a global industrial center in the Kingdom that operates on clean energy, and adopts a sustainable manufacturing approach to help global companies reduce their emissions and move towards carbon-free manufacturing. “Alat”, which is one of the companies of the Public Investment Fund, is an important factor in achieving the goals of Saudi Vision 2030, which aims to promote economic diversification, industrial development, innovation, and provide more job opportunities.

Ultimately, the electronic chip industry remains an arena for ongoing global conflict, while Saudi Arabia is preparing to take its place among the major players. With its large investments and strategic plans, the Kingdom may be able to strengthen its position in this vital sector, which will contribute to diversifying its economy and achieving a prestigious position in the field of technology at the regional and international levels.