Oman to Develop Advanced AI Semiconductor Chips for Next-gen Applications in Salalah Free Zone

Photo: Oman News Agency
McKinsey & Company projects that the global semiconductor market
will reach $1 trillion by 2030.
The Ministry of Transport, Communications, and Information Technology in Oman has formalized a partnership by signing a Memorandum of Understanding (MoU) with AONH Private Holdings, aiming to promote cooperative efforts in developing cutting-edge Artificial Intelligence (AI) Semiconductor Chips. These chips are set to play a crucial role in next-generation AI applications, including self-driving vehicles and AI training systems. The initiative will take place in the Salalah Free Zone within the Dhofar Governorate.
The MoU was officially signed by Dr. Ali Amir Al Shidhani, Oman’s undersecretary for Communications and Information Technology, alongside Ali Steve Chao, chairman of AONH Private Holdings.
Contribution to national expertise
The Oman Advanced Semiconductor Manufacturing plant is projected to enhance national semiconductor design and manufacturing expertise. This initiative is expected to create new business opportunities for Omani youth and attract international talent from leading semiconductor nations such as Taiwan, South Korea, and Japan. The project will facilitate the transfer of global expertise and the localization of advanced semiconductor technologies within Oman.
Alignment with national initiatives
Dr. Al Shidhani underlined that this venture aligns with the Digital Industry Program, a key initiative under the National Digital Economy Program, and Oman Vision 2040. These frameworks identify technology and digital innovation as essential pillars of the national economy. He asserted that establishing this digital industry will boost Oman’s regional and global presence in semiconductor design and advanced packaging technologies. Additionally, it will draw international semiconductor firms, drive further investment in the sector, and nurture local technological innovation and research in microelectronics. Ultimately, this will promote Oman’s economic growth, technological advancement, and sustainable development.