Saudi Arabia Semiconductor Market Size, Investment, Demand & Outlook 2025-2033

Saudi Arabia Semiconductor Market Overview

Market Size in 2024: USD 6.20 Billion

Market Size in 2033: USD 11.10 Billion

Market Growth Rate 2025-2033: 5.90%

According to IMARC Group's latest research publication, "Saudi Arabia Semiconductor Market Size, Share, Trends and Forecast by Components, Material Used, End User, and Region, 2025-2033", The Saudi Arabia semiconductor market size was valued at USD 6.20 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 11.10 Billion by 2033, exhibiting a CAGR of 5.90% during 2025-2033.

How AI is Reshaping the Future of Saudi Arabia Semiconductor Market

• AI-driven demand for specialized chips like GPUs and ASICs is surging, with partnerships between Saudi firms and tech giants like NVIDIA accelerating local AI chip development.
• Smart manufacturing powered by AI improves semiconductor production quality and efficiency, supported by the Ministry of Industry’s push for Industry 4.0 adoption in Saudi Arabia.
• AI algorithms are speeding up chip design and verification processes, helping Saudi semiconductor firms create advanced, efficient chips with faster development cycles.
• Expansion of AI data centers, such as the Groq-Aramco collaboration, is driving steady demand for high-performance processors, positioning Saudi Arabia as a regional AI services hub.
• National initiatives aiming to train 5,000 semiconductor and AI engineers are vital for growing local talent, fueling future innovation and sustaining the semiconductor ecosystem.

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Saudi Arabia Semiconductor Market Trends & Drivers:

Saudi Arabia’s semiconductor market growth is strongly driven by the Vision 2030 initiative, which focuses on economic diversification and reducing dependence on oil. The government’s launch of the National Semiconductor Hub, backed by nearly $266 million, aims to attract at least 50 semiconductor design companies and develop local manufacturing capabilities. This initiative supports training 5,000 engineers in chip design and promotes collaboration with global tech players, reinforcing the kingdom’s ambition to become a regional technology powerhouse and innovation hub.

The rapid adoption of 5G technology and IoT devices is significantly fueling semiconductor demand in Saudi Arabia. With 5G coverage reaching about 90% in major cities and internet penetration at 74%, telecom networks, smart devices, and smart city projects like NEOM require advanced chips. These smart technologies drive semiconductor usage across sectors, including telecommunications, consumer electronics, and urban infrastructure. The deployment of 1.5 million sensors in projects such as NEOM exemplifies the growing semiconductor ecosystem embedded in the kingdom’s smart development plans.

Another major trend is the rise of electric vehicles (EVs) and renewable energy adoption, creating substantial demand for specialized semiconductor components. Investments totaling over $2 billion in EV manufacturing and related technologies are boosting the automotive semiconductor segment. Concurrently, solar and wind energy projects need power semiconductors for efficient energy conversion and management. The government’s focus on these sustainable efforts highlights the broader role of semiconductors in achieving Saudi Arabia’s green energy and smart mobility ambitions.

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Saudi Arabia Semiconductor Industry Segmentation:

The report has segmented the market into the following categories:

Components Insights:

• Memory Devices
• Logic Devices
• Analog IC
• MPU
• Discrete Power Devices
• MCU
• Sensors
• Others

Material Used Insights:

• Silicon Carbide
• Gallium Manganese Arsenide
• Copper Indium Gallium Selenide
• Molybdenum Disulfide
• Others

End User Insights:

• Automotive
• Industrial
• Data Center
• Telecommunication
• Consumer Electronics
• Aerospace and Defense
• Healthcare
• Others

Breakup by Region:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Semiconductor Market

• August 2025: Korean AI semiconductor startup Rebellions expanded operations into Saudi Arabia, enhancing the local AI chip ecosystem with advanced technologies.
• July 2025: Saudi Arabia launched a $266 million National Semiconductor Hub to attract 50 chip design firms and boost local manufacturing.
• June 2025: Groq and Saudi Aramco partnered to build AI data centers, expanding high-performance semiconductor demand in the kingdom.

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