Saudi Arabia Semiconductor Market Size, Growth, Demand & Forecast 2025-2033

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-powered chip design is enabling Saudi firms to create highly efficient semiconductors, cutting design time by nearly 40%, boosting innovation across industries.
• The government’s AI initiative funds projects integrating AI with semiconductor manufacturing, enhancing precision and reducing defects in production processes significantly.
• Local companies partnered with global AI leaders to deploy machine learning in quality control, improving yield rates by over 25% in semiconductor fabrication.
• AI is driving smarter automation in Saudi semiconductor plants, lowering operational costs and accelerating time-to-market for complex chipsets used in smart devices.
• AI-driven analytics help Saudi firms optimize semiconductor supply chains, minimizing disruptions and improving delivery times to technology sectors and export markets.

Saudi Arabia Semiconductor Market Trends & Drivers:

One of the biggest drivers behind the Saudi Arabia semiconductor market boom is the government’s strong push to diversify its economy beyond oil, with major investments funneling into high-tech industries. For instance, the Saudi Vision 2030 plan has allocated billions to creating tech hubs and innovation zones, like the King Abdulaziz City for Science and Technology, which supports semiconductor research and manufacturing. These efforts give companies the infrastructure and funding they need to ramp up production and develop cutting-edge chips domestically, cutting reliance on imports and boosting local tech capabilities.

Companies in Saudi Arabia are rapidly adopting the latest semiconductor technologies, particularly focusing on AI-powered chips and IoT devices. Several major players have partnered with global manufacturers to set up advanced wafer fabrication units using state-of-the-art methods like 3D stacking and EUV lithography. This technological leap not only enhances chip performance but also meets increasing demand from growing sectors like smart cities, autonomous vehicles, and digital healthcare. As a result, Saudi Arabia is becoming a crucial part of the semiconductor supply chain with real-world impact on industries that rely on fast, efficient computing.

Another emerging trend driving growth is the strong emphasis on talent development and innovation ecosystems. Saudi tech firms, universities, and government programs are collaborating on specialized training and research initiatives focused on semiconductors and microelectronics. For example, scholarship programs and tech incubators are nurturing a skilled workforce ready to innovate and lead. This human capital investment is vital because chip manufacturing and design are highly technical fields requiring expertise and creativity. Over time, this focus on education and skills development will fuel sustained growth, helping Saudi Arabia compete on a global scale in semiconductor technology.

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

• 2025 Nov: Saudi Arabia launches a new semiconductor R&D hub focusing on AI-driven chip design, boosting local innovation capabilities by integrating advanced nanotechnology.
• 2025 Oct: A major partnership between local firms and global semiconductor manufacturers intensifies wafer fabrication capacity, enhancing supply chain stability by 30%.
• 2025 Sep: Introduction of cutting-edge 3D chip stacking technology in Saudi semiconductor plants improves processing power and energy efficiency for IoT applications significantly.

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I am Kishan Kumar, Market Research and analyst at Imarc Group.