Saudi Arabia Semiconductor Market Outlook, Growth, and Trends Forecast 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 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.

Download a sample PDF of this report: https://www.imarcgroup.com/saudi-arabia-semiconductor-market/requestsample

How AI is Reshaping the Future of Saudi Arabia Semiconductor Market

• AI-powered chip design centers in Riyadh are delivering up to 30% faster prototyping, thanks to Saudi government support through digital innovation grants.

• Local manufacturers have now integrated AI-driven defect detection, cutting wafer waste by nearly 18% and improving overall plant efficiency across production lines.

• Saudi semiconductor labs are partnering with top global AI firms, enabling custom chips for 5G, robotics, and smart city projects now rolling out nationwide.

• AI is helping optimize supply chains for local chip makers, reducing logistics costs by nearly 22%, based on recent government statistics shared by SABIC Tech Ventures.

• University-led AI research teams are collaborating with Intel and ARM, launching hands-on training for over 4,500 young Saudi engineers focused on AI chip development.

Saudi Arabia Semiconductor Market Trends & Drivers:

Saudi Arabia’s semiconductor market is charging ahead, driven by a wave of public and private investment aimed squarely at technological self-sufficiency. A landmark deal saw the Saudi government committing over $2 billion to local chip manufacturing initiatives, with Silicon Valley-based companies setting up joint ventures in Riyadh’s upcoming digital city parks. The government’s Made in Saudi program is offering attractive tax breaks and land use incentives to semiconductor firms, helping to speed up factory development and talent recruitment. These subsidies have sparked a surge of foreign direct investment, resulting in a significant increase in the number of active semiconductor projects in the Kingdom.

Homegrown demand is another major catalyst, fueled by the country’s massive rollouts of 5G infrastructure, smart grids, and digital healthcare solutions. Local telecoms are already deploying tens of thousands of new base stations each quarter, relying on advanced chips to cut energy use and boost network speeds. At the same time, leading healthcare providers are piloting AI-driven medical imaging systems and wearable diagnostics, creating a heightened need for both memory and logic semiconductors. This domestic push is projected to drive up local chip consumption across industrial, consumer, and enterprise applications.

Collaboration and R&D innovation are lighting up the sector, with Saudi universities and global semiconductor players launching joint research programs targeting advanced packaging, power electronics, and AI-optimized chipsets. International firms like ARM and Huawei have announced new R&D centers and chip design hubs inside Saudi innovation districts, aiming to train thousands of local engineers in leading-edge semiconductor design. These partnerships are already delivering real-world results, with the release of energy-efficient chips tailored for the Middle East’s climate and stringent power grid standards, enabling custom solutions for everything from autonomous vehicles to sustainable city initiatives.

Saudi Arabia Semiconductor Market Industry Segmentation:

The report provides a detailed analysis of the Saudi Arabia semiconductor market share, highlighting key segments and regional contributions driving overall growth. It includes forecasts for the period 2025-2033 and historical data from 2019-2024 for the following segments.

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

• Oct 2025: HUMAIN and Qualcomm unveiled a partnership to deploy edge-to-cloud AI infrastructure in Saudi Arabia, targeting rollout of 200 megawatts of Qualcomm AI rack solutions for smart city projects.​

• Oct 2025: Saudi Public Investment Fund and Aramco announced a term sheet for Aramco to acquire a significant stake in AI startup HUMAIN, strengthening domestic chip innovation and capital flow.​

• Oct 2025: Saudi Arabia’s AI chief confirmed agreements with Nvidia, AMD, and US startups, aiming for 18,000 chips deployed in the first phase to drive national AI and semiconductor growth.​

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.

Contact Us:

IMARC Group 134 N 4th St. Brooklyn, NY 11249, USA Email: sales@imarcgroup.com Tel No:(D) +91 120 433 0800 United States: +1-201971-6302