Muscat: Today, the Ministry of Transport, Communications, and Information Technology entered into a Memorandum of Understanding (MoU) with AONH Private Holdings to establish a framework for collaboration in the development of advanced Artificial Intelligence Semiconductor Chips.
These chips are intended for use in next-generation AI applications, including autonomous vehicles and AI training, among others. The initiative will be situated in the Salalah Free Zone within the Dhofar Governorate.
The MoU was executed by Dr. Ali Amir Al Shidhani, Undersecretary for Communications and Information Technology, and Ali Steve Chao, Chairman of AONH Private Holdings.
The Oman Advanced Semiconductor Manufacturing facility is anticipated to play a significant role in cultivating national expertise in semiconductor design and production, generating new business prospects for Omani youth, and attracting international talent from leading semiconductor-producing countries such as Taiwan, South Korea, and Japan. This initiative will facilitate the transfer of global expertise and the localization of cutting-edge semiconductor technologies in Oman.
Dr. Al Shidhani highlighted that this initiative is in line with the Digital Industry Program, a key component of the National Digital Economy Program, and Oman Vision 2040, which emphasizes technology and digital innovation as essential elements of the national economy. He stated that the development of this digital industry will enhance Oman’s regional and global standing in semiconductor design and advanced packaging technologies. It will also draw international semiconductor firms, promote further investment in the sector, and stimulate local technological innovation and research in microelectronics. Ultimately, this will contribute to economic growth, technological progress, and sustainable development in Oman.
Dr. Al Shidhani emphasized the swift expansion of the semiconductor and microchip industry, which is being propelled by the surging global demand for these components. This demand is particularly influenced by advancements in artificial intelligence (AI), the Internet of Things (IoT), 5G technology, and autonomous driving systems. McKinsey & Company projects that the global semiconductor market will reach USD 1 trillion by 2030.
In light of these forecasts, the Ministry is prioritizing the development of Omani talent in semiconductor and microchip technology. This initiative involves partnerships with local and international educational institutions, the integration of semiconductor-focused curricula into relevant academic programs, and the establishment of specialized training programs in collaboration with leading global organizations and training centers.
Ali Steve Chao, Chairman of AONH Private Holdings, expressed his excitement regarding the signing of the Memorandum of Understanding (MoU), stating that their partnership with Oman is motivated by the country's strategic location, favorable investment climate, and the support provided by local authorities. He noted that Oman has the necessary infrastructure, including energy, water, transportation networks, and access points for maritime, land, and air travel, to facilitate such projects. This initiative aims to boost manufacturing capabilities, ranging from high-performance memory solutions to next-generation AI chips, thereby enhancing Oman’s standing in the global semiconductor sector, especially in manufacturing processes tailored to meet the increasing demand for AI technologies.
Chao further stated that the objective is to position Oman as a key player in the global semiconductor supply chain. The aim is to attract leading global talent to transform the Dhofar facility into a center for researchers, engineers, and developers focused on creating innovative solutions for semiconductor production, data centers, and AI technologies.
