Saudi Arabia Semiconductor Market Size to Worth USD 11.10 Billion by 2033, At a CAGR of 5.90%

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 reached USD 6.20 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 11.10 Billion by 2033, exhibiting a growth rate (CAGR) of 5.90% during 2025-2033.

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How AI is Reshaping the Future of Saudi Arabia Semiconductor Market

● AI's turbocharging Saudi's semiconductor push via the National Semiconductor Hub, snagging 50 design firms with SAR 3.5 billion in funding to craft chips for AI-driven EVs and drones.

● HUMAIN's fresh team-up with Qualcomm rolls out edge-to-cloud AI setups, slashing latency for global inferencing and positioning Saudi as a top AI hub with optimized data centers.

● Nvidia's dropping 18,000 Blackwell chips into a $10 billion data center blitz, powering AI workloads 30% cheaper thanks to Saudi's energy edge from oil and gas.

● Vision 2030's NSDAI strategy pumps AI adoption across government, demanding advanced semiconductors that cut energy use in factories by 20% through smart processing.

● Leap 2025 event unveils moonshot programs for local chip fabs and quantum tech, drawing global players to boost Saudi's AI ecosystem with 5,000 new engineer jobs.

Saudi Arabia Semiconductor Market Trends & Drivers:

Saudi Arabia's Vision 2030 plan to move its economy beyond oil and strengthen its technology sectors has given rise to a semiconductors boom. The crown jewel is the Alat project. With $100 billion from the Public Investment Fund, they want to make everything from EV chips to AI circuit boards in Saudi Arabia. We have our own National Semiconductor Hub, whose deep tech fund of SAR 266 million alone would bring at least 50 design companies in the Kingdom and drive local innovation. With SAR 3.5 billion in investment from our government, we have already seen practical results of this investment with a SAR 6.8 billion reduction in import costs eased through substitution by local manufacturing.

The Saudi AI boom has whipped their chip scene into a frenzy. Demand for smart processing is off the charts. Then there is Humain, working with Qualcomm on leading-edge AI infrastructure, with ultra-low-latency edge devices performing inferencing across the globe, be it real-time analytics for traffic management or predictive maintenance for factory manufacturing lines. And there is a semiconductor revolution underway. The global semiconductor pie is projected at more than $600 billion, and Saudi is segmenting out a fabless slice for its defence and automotive sectors. These chips help data centers use less energy by managing workloads. It is a nifty way to make the country's digital infrastructure greener and more resilient.

The core of this approach is to create Saudi partnerships with the largest global firms prepared to bring technology and create jobs. For example, US chipmaker MemryX opened an office in Riyadh, announcing partnerships and new investments to localize the production of chips for future AI and edge computing needs. In programs like the collaboration with King Abdulaziz City for Science and Technology, we are training a pool of up to 5000 engineers for the perception technology sector, generating 50,000 to 60,000 jobs. The proof is in the pudding: whether that's integrated surveillance chips to improve public safety or sensors in an electric vehicle to lower energy use, we're creating an ecosystem that will benefit communities with products that are built for durability.

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Saudi Arabia Semiconductor Market 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

● October 2025: Saudi Arabia launched a $266 million fund to support its semiconductor ecosystem, boosting local chip design and engineering talent development significantly.

● September 2025: Foxconn announced a $9 billion semiconductor foundry project at NEOM, aiming to establish advanced chip manufacturing capabilities in the kingdom.

June 2025: Saudi Arabia's STC Group expanded 5G infrastructure, enhancing IoT networks demanding sophisticated semiconductors for smart city and industrial applications.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

About Us:

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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