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

Saudi Arabia Semiconductor Market Overview
Market Size in 2024: USD 6.20 Billion
Market Forecast 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 transforms Saudi chip design cutting cycles from eighteen to twelve months while boosting power efficiency backed by National Semiconductor Hub SAR one billion fund.

● AI predictive tools detect defects in Saudi semiconductor manufacturing with ninety nine percent accuracy reducing waste and improving yields via programs training five thousand engineers.

● AI algorithms optimize Saudi semiconductor supply chains forecasting demand and slashing procurement costs by fifteen to twenty percent in automotive and telecom sectors.

● Groq's one point five billion investment builds AI data centers in Saudi Arabia driving semiconductor demand through government tech hubs and Nvidia chip approvals.

● The Public Investment Fund's forty billion dollar allocation to AI with five thousand engineer training programs is fueling semiconductor advances in Saudi facilities.

Saudi Arabia Semiconductor Market Trends & Drivers:

Saudi Arabia's semiconductor market is booming thanks to bold government moves like the National Semiconductor Hub, which is pulling in big investments and partnerships to build a homegrown industry. Just look at the recent Semiconductor Forum in Riyadh, where heavyweights like Qualcomm, Lenovo, AWS, and HUMAIN gathered to push localization plans under Vision 2030-aiming for design, packaging, and manufacturing right here to cut import reliance. The Public Investment Fund backs this with over $266 million in a deep tech venture fund, targeting at least 50 chip design firms, while the $100 billion Alat initiative and a $9 billion Foxconn foundry in NEOM are set to create 39,000 jobs in advanced tech. These aren't just plans; they're sparking real action, from SR150 million in tech support to forums aligning investors on AI, data centers, and smart cities. It's creating a ripple effect, drawing global players eager to tap Saudi's strategic spot and resources for a $13 billion ecosystem that powers everything from cloud infra to energy systems. This push feels like the Kingdom grabbing the wheel of its tech future, making semiconductors a cornerstone of economic shift.

The explosion of AI and data centers is supercharging demand for high-performance chips across Saudi Arabia, turning mega-projects into real-world chip magnets. Take NEOM's fresh $5 billion deal with DataVolt for a 1.5-gigawatt AI data center in Oxagon, or the Groq-Aramco Digital collab building massive inferencing hubs in Dammam-these are sucking in processors and memory at scale. HUMAIN's tie-up with Qualcomm is deploying AI infrastructure nationwide, while the U.S. greenlights advanced chip sales to fuel it all, positioning Saudi as a regional AI powerhouse. With 92% smartphone penetration driving consumer electronics hunger, and Vision 2030 funneling billions into digital transformation-like the $40 billion AI push-these facilities aren't just buildings; they're ecosystems needing endless semiconductors for training models, cloud services, and edge computing. It's exciting to see how this ties into smart industries, creating jobs and innovation hubs that make tech feel tangible and urgent.

5G rollout and IoT boom are lighting a fire under Saudi's semiconductor needs, fueling everything from smart cities to everyday connectivity. With 92% of folks accessing smartphones, consumer gadgets are gobbling up chips for processors and sensors, while Vision 2030's digital drive amps up IoT in telecom and autos. Partnerships at recent forums spotlight 5G infrastructure as key, powering high-speed networks that demand advanced semiconductors for base stations and devices-think the $145 million market jumping into hyperscale ops. Real apps shine in NEOM and Riyadh's smart projects, where IoT sensors optimize traffic, energy, and security, all reliant on these chips. Government incentives for e-commerce and local manufacturing make electronics cheaper and widespread, blending with EV pushes using SiC for efficient powertrains. It's like the Kingdom's wiring itself for a hyper-connected future, where semiconductors aren't optional-they're the backbone making daily life smarter and industries sharper.

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

● February 2026: Saudi Arabia's Semiconductor Forum in Riyadh gathered global leaders to accelerate localization, emphasizing AI-powered data centers and smart industries for enhanced digital sovereignty.

● December 2025: Movandi joins Saudi's NTDP Relocate initiative, deploying next-gen RF and wireless technologies to drive AI transformation and high-speed communications.

● October 2025: HUMAIN and Qualcomm collaborate on AI infrastructure, targeting 200 megawatts of AI200 rack solutions for high-performance inference services.

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