The Ministry of Transport, Communications, and Information Technology in Oman has formalized a partnership by signing a Memorandum of Understanding (MoU) with AONH Private Holdings, aiming to promote cooperative efforts in developing cutting-edge Artificial Intelligence (AI) Semiconductor Chips. These chips are set to play a crucial role in next-generation AI applications, including self-driving vehicles and AI training systems. The initiative will take place in the Salalah Free Zone within the Dhofar Governorate.
The MoU was officially signed by Dr. Ali Amir Al Shidhani, Oman’s undersecretary for Communications and Information Technology, alongside Ali Steve Chao, chairman of AONH Private Holdings.
Contribution to national expertise
The Oman Advanced Semiconductor Manufacturing plant is projected to enhance national expertise in semiconductor design and manufacturing. This initiative is expected to create new business opportunities for Omani youth and attract international talent from leading semiconductor nations such as Taiwan, South Korea, and Japan. The project will facilitate the transfer of global expertise and the localization of advanced semiconductor technologies within Oman.
Alignment with national initiatives
Dr. Al Shidhani underlined that this venture is in line with the Digital Industry Program, a key initiative under the National Digital Economy Program, as well as Oman Vision 2040. These frameworks identify technology and digital innovation as essential pillars of the national economy. He asserted that establishing this digital industry will boost Oman’s regional and global presence in semiconductor design and advanced packaging technologies. Additionally, it will draw international semiconductor firms, drive further investment in the sector, and nurture local technological innovation and research in microelectronics. Ultimately, this will promote economic growth, technological advancement, and sustainable development in Oman.
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Growth in semiconductor market
Also, Dr. Al Shidhani pointed out the rapid expansion of the semiconductor and microchip market, which is being propelled by the rising global demand for these chips, especially in light of advancements in artificial intelligence (AI), the Internet of Things (IoT), 5G networks, and autonomous driving technologies. McKinsey & Company projects that the global semiconductor market will reach $1 trillion by 2030.
Empowering Omani talent
In light of these forecasts, the Ministry is placing great emphasis on equipping Omani talent with the necessary knowledge and skills in semiconductor and microchip technology. This effort includes collaboration with local and international universities and colleges, integrating semiconductor-related curricula into relevant academic programs, and developing specialized training initiatives with leading global institutes and training centers.
Commitment to the global supply chain
Expressing his excitement about the MoU signing, Ali Steve Chao, chairman of AONH Private Holdings, remarked: “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 stressed: “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.”
