The Ministry of Transport, Communications, and Information Technology in Oman has signed a Memorandum of Understanding (MoU) with AONH Private Holdings to formalize their collaboration in developing next-generation Artificial Intelligence (AI) Semiconductor Chips. These advanced chips will play a crucial role in powering future AI applications, including self-driving vehicles and AI training systems. The project will be based in the Salalah Free Zone in Dhofar Governorate.
The MoU was officially signed by Dr. Ali Amir Al Shidhani, Undersecretary for Communications and Information Technology, and Ali Steve Chao, Chairman of AONH Private Holdings. The establishment of the Oman Advanced Semiconductor Manufacturing plant is expected to build national expertise in semiconductor design and manufacturing, create new business opportunities for Omani youth, and attract international talent from leading semiconductor nations like Taiwan, South Korea, and Japan. This will facilitate the transfer of global expertise and the localization of cutting-edge semiconductor technologies in Oman.
Dr. Al Shidhani emphasized that the project is in line with the Digital Industry Program, a key initiative under the National Digital Economy Program, and Oman Vision 2040, which prioritizes technology and digital innovation as fundamental pillars of the nation’s economy. He stated that the creation of this digital industry will strengthen Oman’s presence both regionally and globally in semiconductor design and advanced packaging technologies, while also attracting international semiconductor companies. Furthermore, it is expected to encourage investment in the sector, foster local technological innovation, and advance research in microelectronics. Ultimately, this will contribute to Oman’s economic growth, technological progress, and sustainable development.
Dr. Al Shidhani also noted the rapid growth of the semiconductor and microchip market, driven by the rising global demand for these chips, particularly with the surge in AI, the Internet of Things (IoT), 5G networks, and autonomous driving technologies. Forecasts from McKinsey & Company predict the global semiconductor market will reach USD 1 trillion by 2030.
In response to these projections, the Ministry has placed a significant focus on equipping Omani talent with the necessary knowledge and skills in semiconductor and microchip technology. This includes collaborating with local and international universities and colleges, integrating semiconductor-related curricula into academic programs, and offering specialized training initiatives with leading global institutes.
Ali Steve Chao, Chairman of AONH Private Holdings, expressed his excitement about the MoU, stating that the decision to partner with Oman is based on its strategic location, investment-friendly environment, and the strong infrastructure provided by local authorities. These include reliable energy, water, transportation, and gateways for maritime, land, and air connections. He added that the project will enhance manufacturing capabilities for high-performance memory solutions and next-generation AI chips, boosting Oman’s position in the global semiconductor industry.
Chao further emphasized that the aim is to integrate Oman into the global semiconductor supply chain and make the Dhofar plant a hub for researchers, engineers, and developers focused on semiconductor manufacturing, data centers, and AI technologies.
