Oman is set to begin an advanced artificial intelligence (AI) semiconductor chip manufacturing project in Salalah Free Zone, Dhofar, following the signing of a memorandum of understanding (MoU) between the Ministry of Transport, Communications, and Information Technology (MTCIT) and AONH Private Holdings. The project is supported by both regional and international investment funds.
The initiative aims to establish Oman as a key player in the global semiconductor industry, responding to the growing demand for AI technologies. It will also contribute to the development of local expertise in chip design and manufacturing, and attract international talent, particularly from Taiwan, South Korea, and Japan.
H.E. Dr. Ali bin Amer al Shidhani, Undersecretary for Communications and Information Technology in MTCIT, emphasized that the project aligns with Oman Vision 2040 and the Digital Industry Programme, contributing to economic growth and technological progress in the country. The project is expected to foster technical innovation, research in microelectronics, and sustainable development.
The global semiconductor industry is experiencing rapid growth, driven by demand for AI, 5G networks, IoT, and autonomous driving technologies, with the market projected to reach a US$1 trillion valuation by 2030. Ali Steve Chao, Chairman of AONH Private Holdings, pointed to Oman’s strategic location and favorable investment environment as key factors in selecting the country for this landmark project. Production operations are expected to begin three years after the project’s launch.
