Saturday 22 / February / 2025
Muscat: The Ministry of Transport, Communications, and Information Technology signed today a Memorandum of Understanding (MoU) with AONH Private Holdings to formalize mutual cooperation to develop advanced Artificial Intelligence Semiconductor Chips.
The chips will be used in next generation Ai applications such as self-driving vehicles, AI training and others. The project, will be based in the Salalah Free Zone in Dhofar Governorate.
The MoU was signed 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 plant is expected to contribute to building and developing national expertise in semiconductor design and manufacturing, creating new business opportunities for Omani youth, and attracting international talent from leading semiconductor nations such as Taiwan, South Korea, and Japan. This will support the transfer of global expertise and the localization of advanced semiconductor technologies in Oman.
Dr. Al Shidhani emphasized that this project aligns with the Digital Industry Program, one of the key initiatives under the National Digital Economy Program, and Oman Vision 2040, which positions technology and digital innovation as fundamental pillars of the national economy. He affirmed that the establishment of this digital industry will strengthen Oman’s regional and global presence in semiconductor design and advanced packaging technologies. It will also attract international semiconductor companies, encourage further investment in the sector, and foster local technological innovation and research in microelectronics. Ultimately, this will contribute to economic growth, technological advancement, and sustainable development in Oman.
Dr. Al Shidhani also highlighted the rapid growth of the semiconductor and microchip market, driven by the increasing global demand for these chips—particularly with the rise of artificial intelligence (AI), the Internet of Things (IoT), 5G networks, and autonomous driving technologies. According to forecasts by McKinsey & Company, the global semiconductor market is expected to reach USD 1 trillion by 2030.
Given these projections, the Ministry has placed significant emphasis on equipping Omani talent with essential knowledge and skills in semiconductor and microchip technology. This includes collaborating with local and international universities and colleges, incorporating semiconductor-related curricula into relevant academic programs, and developing specialized training initiatives with leading global institutes and training centers.
Expressing his enthusiasm for the MoU signing, Ali Steve Chao, Chairman of AONH Private Holdings, stated: “Our decision to partner with Oman stems from its strategic location, investment-friendly environment, and the incentives and facilities provided by the relevant authorities. Additionally, Oman possesses the necessary infrastructure to support such projects, including energy, water, road networks, and maritime, land, and air gateways. This project will enhance manufacturing capabilities, from high-performance memory solutions to the next generation of AI chips. Moreover, it will elevate Oman’s position in the global semiconductor industry, particularly in manufacturing processes designed to meet the growing demand for AI-driven technologies.”
Chao further emphasized: “We aim to make Oman an integral part of the global semiconductor supply chain. Our goal is to attract top global talent to ensure that the plant in Dhofar becomes a hub for researchers, engineers, and developers to innovate solutions for semiconductor manufacturing, data centers, and AI technologies.”
