Saudi Arabia Semiconductor Foundry Market

Saudi Arabia Semiconductor Foundry Market Overview:

The Saudi Arabia semiconductor foundry market size reached USD XX Million in 2024. Looking forward, IMARC Group expects the market to reach USD XX Million by ​2033​, exhibiting a growth rate (CAGR) of XX% during 2025-2033. The rising demand for consumer electronics, growing adoption of IoT and AI technologies, implementation of government initiatives to localize chip manufacturing, increased investment in industrial automation, and expanding automotive electronics sector are driving the growth of the market in Saudi Arabia.

Saudi Arabia Semiconductor Foundry Market Trends:

Strategic Government Investment in Semiconductor Manufacturing

The Saudi government is increasingly prioritizing domestic semiconductor capabilities as part of its broader economic diversification goals under Vision 2030. According to an industry report, Saudi Arabia has launched a SAR 1 Billion (about USD 266.7 Million) investment fund dedicated to semiconductor companies and unveiled National Semiconductor Hub (NSH) to establish a fabless semiconductor design ecosystem, aiming to attract 50 chip design firms and train over 5,000 engineers by 2030. These efforts are directly influencing the semiconductor foundry market in Saudi Arabia by creating a more favorable environment for local chip fabrication projects. The country is fostering public-private partnerships and providing incentives to attract global semiconductor foundry players, which is further strengthening Saudi Arabia semiconductor foundry market growth. Besides this, the kingdom is actively funding research centers and industrial parks focused on microelectronics, aiming to build a robust semiconductor manufacturing infrastructure. Furthermore, the National Industrial Development and Logistics Program (NIDLP) plays a pivotal role in this, offering logistical support and regulatory facilitation to semiconductor ventures. This policy push is also aligned with the localization goals of the ICT sector, especially in defense, energy, and digital industries that demand high-reliability chips. Moreover, strategic collaborations with international foundry leaders are being explored to bridge technical gaps and accelerate capability development. These developments are laying the groundwork for long-term growth in Saudi Arabia’s semiconductor ecosystem and are expected to increase the country’s self-reliance in chip fabrication technologies.

Increasing demand in Automotive and Industrial Electronics

Saudi Arabia’s growing focus on smart manufacturing, electric mobility, and renewable energy systems is propelling demand for advanced semiconductor components, which is positively impacting Saudi Arabia semiconductor foundry market outlook. According to industry reports, Saudi Arabia plans for 30% of vehicles in Riyadh to be electric by 2030 as part of its broader sustainability and innovation goals. As the country scales up production of electric vehicles (EVs) through favorable initiatives, the need for microcontrollers, power semiconductors, and analog chips is on the rise. Industrial applications such as automation equipment, robotics, and energy grid management systems are also increasingly reliant on customized integrated circuits and logic devices. These demand segments typically require mixed-signal and power-efficient chip architectures, encouraging local foundry players and joint ventures to develop niche fabrication capabilities. Moreover, the rise in the deployment of smart sensors and control systems across oil refineries, petrochemical facilities, and industrial clusters is further augmenting Saudi Arabia semiconductor foundry market share. As production lines across Saudi Arabia digitize, the requirement for reliable, application-specific chips will continue to grow, reinforcing the strategic role of semiconductor foundries in the country’s industrial evolution.

Saudi Arabia Semiconductor Foundry Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on technology node, foundry type, and application.

Technology Node Insights:

• 10/7/5nm
• 16/14nm
• 20nm
• 45/40nm
• Others

The report has provided a detailed breakup and analysis of the market based on the technology node. This includes 10/7/5nm, 16/14nm, 20nm, 45/40nm, and others.

Foundry Type Insights:

• Pure Play Foundry
• IDMs

A detailed breakup and analysis of the market based on the foundry type have also been provided in the report. This includes pure play foundry and IDMs.

Application Insights:

• Communication
• Consumer Electronics
• Computer
• Automotive
• Others

The report has provided a detailed breakup and analysis of the market based on the application. This includes communication, consumer electronics, computer, automotive, and others.

Regional Insights:

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

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern and Central Region, Western Region, Eastern Region, and Southern Region. 

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Saudi Arabia Semiconductor Foundry Market News:

• On January 9, 2025, Kneron, a pioneer in Edge AI System-on-Chip (SoC) technology, announced the establishment of a subsidiary in Riyadh, Saudi Arabia, in partnership with the National Semiconductor Hub (NSH) and the National Technology Development Program (NTDP). This strategic move aligns with Saudi Arabia's Vision 2030, aiming to foster a fabless semiconductor ecosystem. Kneron's expansion underscores its commitment to leveraging local talent and resources to advance AI chip design and development within the Kingdom.
• ​On February 5, 2025, Saudi Arabia's Ministry of Investment selected EdgeCortix, a fabless semiconductor business based in Japan, to become a member of the National Semiconductor Hub (NSH) program. EdgeCortix will open a subsidiary in Riyadh to promote cutting-edge semiconductor engineering and edge AI development.

Saudi Arabia Semiconductor Foundry Market Report Coverage:

Key Questions Answered in This Report:

• How has the Saudi Arabia semiconductor foundry market performed so far and how will it perform in the coming years?
• What is the breakup of the Saudi Arabia semiconductor foundry market on the basis of technology node?
• What is the breakup of the Saudi Arabia semiconductor foundry market on the basis of foundry type?
• What is the breakup of the Saudi Arabia semiconductor foundry market on the basis of application?
• What is the breakup of the Saudi Arabia semiconductor foundry market on the basis of region?
• What are the various stages in the value chain of the Saudi Arabia semiconductor foundry market? 
• What are the key driving factors and challenges in the Saudi Arabia semiconductor foundry market?
• What is the structure of the Saudi Arabia semiconductor foundry market and who are the key players?
• What is the degree of competition in the Saudi Arabia semiconductor foundry market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia semiconductor foundry market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia semiconductor foundry market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia semiconductor foundry industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.