Oman has announced an ambitious plan to establish an advanced artificial intelligence (AI) semiconductor chip manufacturing project in the Salalah Free Zone, located in the Dhofar region in the south of the country. This initiative follows a memorandum of understanding (MoU) signed on Monday between the Ministry of Transport, Communications and Information Technology (MTCIT) and AONH Private Holdings, with the support of regional and international investment funds.
The project aims to strengthen Oman’s position in the global semiconductor industry, addressing the growing demand for AI technologies. It will focus on developing local expertise in chip design and manufacturing while attracting international talent, especially from semiconductor powerhouses such as Taiwan, South Korea, and Japan.
H E Dr. Ali bin Amer al Shidhani, Undersecretary for Communications and Information Technology at MTCIT, noted that the initiative aligns with Oman’s Digital Industry Programme under the National Programme for Digital Economy and the country’s Vision 2040.
Although details about AONH Private Holdings remain scarce, company chairman Ali Steve Chao emphasized Oman’s strategic location and its investor-friendly environment as key reasons for choosing the country for this project. He highlighted the goal of making Oman a significant player in the global chip manufacturing arena, particularly focusing on advanced memory solutions and next-generation AI chips.
Chao also expressed plans to attract top global talent to the country, creating a hub for researchers, engineers, and developers to drive innovation in semiconductor manufacturing, data centers, and AI industries.
Production operations for the project are expected to begin within three years of the launch.
