Saudi
Arabia Semiconductor market is expected to increase during the forecast period,
owing to the following factors including favourable demographics, boosting
foreign trade and investments. Semiconductors such as memory chips are a
backbone and a prerequisite for any endeavours in emerging technologies. Everything
from artificial intelligence (AI) to smartphone reliance to internet of things
(IoT) and 5G adoption, have been influenced by semiconductors. Semiconductor is
used to power technologies that enrich lives of consumers and make businesses
run smarter, faster, and more efficiently.
Semiconductors are substances whose
conductivity falls between those of conductors and those of non-conductors or
insulators. In addition to pure materials like silicon or germanium,
semiconductors can also contain compounds like gallium arsenide or cadmium
selenide. Doping, a procedure that involves adding small amounts of impurities
to clean semiconductors, results in significant changes in the material's
conductivity. Many products employ semiconductors, including computers,
smartphones, appliances, gaming equipment, and medical devices.
Increasing Trend of Vehicle
Electrification
In recent years, the cost of electric
vehicles has been comparatively very high due to the high manufacturing cost.
The growth of new start-ups in the electric vehicle segment brought new
innovative ideas and technologies which helped in reducing the production cost
of vehicle electrification. This resulted in consumers shifting focus towards
electric vehicle segment. The rise of fuel prices has also escalated the speed
of vehicle electrification, especially in cities where gas emissions, congestion,
and mobility problems are raising the demand for new features in cars. The use
of semiconductors has also enabled replacing the manual system with an electric
system. Electrification of vehicles offers additional benefits such as reduced
carbon emission and increased fuel mileage.
Furthermore, government of Saudi Arabia is
promoting vehicle electrification to accelerate sustainable mobility growth.
For instance, in February 2023, Saudi Arabia investigated in several opportunities
and are currently making plans to become an EV manufacturing hub starting with
500,000 cars, by 2030. The country has already flexed some of its abilities
to invest in the electric vehicle with USD 2 billion spent on a majority stake
in Lucid Motors, a US-based EV maker. Also, in January 2023, the California
startup Canoo, signed an agreement with Saudi’s General Contracting Company
(GCC), Olayan, to distribute its vehicles in the country. Hence, the growth
trend of vehicle electrification has surged the demand for semiconductors in
Saudi Arabia as they are an important component in electric vehicles.
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Technological Advancements:
The semiconductor industry has been
significantly impacted by technological development and its integration in the
new digital environment. Today's integrated circuit (IC) designs incorporate
more system functionality into single chips (System on Chip). Pre-designed IP
blocks and cores are increasingly important in these SoC designs. Because most
SoC designs use a standard microprocessor, a lot of system functionality is
standardized and can be reused across different designs. Moreover,
semiconductor memory IP has been directly impacted by the demand for
high-performance memory systems. The development of increasingly complicated
semiconductors that can support intensive memory operations is being driven by
the desire for quicker and more effective memory solutions. Overall, dependence
on IP solution providers is growing, which drives huge investments in the Saudi
Arabia semiconductor market. The Saudi Arabia semiconductor market is also exploring
new materials and technologies to reduce the environmental impact of
semiconductor production. For instance, researchers are developing new
materials that are more environmentally friendly than traditional materials.
This includes materials made from renewable sources, such as wood or plant-based
polymers. In addition, technologies such as 3D printing are being used to
produce more efficient and sustainable semiconductor components.
Rising Investments and Collaborations
Semiconductor and related device manufacturing
companies are increasingly collaborating with many industrial manufacturing and
technology companies. For instance, in March 2022, Advanced Electronics
Company, one of the leading electronics and information technology companies in
Saudi Arabia, announced the signing of a Memorandum of Understanding (MoU) with
Saudi Aramco and Yokogawa during the Future of Semiconductors Forum held in
King Abdulaziz City for Science and Technology. The MoU will help accelerate
the enablement of AEC to localize the fabrication of semiconductors and
manufacturing of digital products. The signed MoU aims to contribute to increasing
value of manufacturing localization to the national GDP. It will also increase
the self-reliance of the local industry and help mitigate the current
challenges associated with semiconductors’ global supply-chain, by localizing
and transferring technology to the Kingdom. Furthermore, in August 2021, Saudi
Arabia unveiled its first locally made smart chip and announced a slew of new
high-tech initiatives worth USD 1.07 billion in partnership with 10 global tech
giants to improve its technological process. The new initiatives in Riyadh
aim to boost innovation and the digital capabilities of the kingdom and produce
one programmer out of every 100 Saudi nationals by 2030. In addition, the Arab
world's largest economy has tied up with leading technology giants that include
IBM, Microsoft, Cisco, and Trend Micro.
The Rise of Artificial Intelligence,
Machine Learning and IoT
Semiconductor technologies are used to
create everything from bomb detectors to smart glasses. Semiconductor chip
manufacturers are constantly working to meet the needs of AI and IoT, which is
expected to drive Semiconductor market trends and demand. The Internet of
Things is the next generation of computing devices embedded in everyday objects
that can send and receive data, including wearable devices, smart home devices,
and factory equipment. AI and machine learning add the most value to the
manufacturing process by lowering costs, increasing throughput, and increasing
yields. Furthermore, AI and machine learning help semiconductor companies
improve accuracy by utilizing metrology readings and tool-sensor data, that
enables machine learning. Therefore, with the rise of Artificial Intelligence,
Machine Learning and IoT, there is an increase in Saudi Arabia semiconductor
market.
Rapid Acceleration Toward Industry 4.0 and
Penetration of Industry 5.0
Industry 4.0 has enormous potential to
increase productivity, reduce waste, improve product quality, increase
manufacturing flexibility, lower operating costs, and unleash a slew of
efficiencies. One of the most important developments in Industry 4.0 is vision
equipment, which uses data analytics technologies to access large data sets to
detect and assess issues in defective products. Industry 5.0 enable even more
customization to meet customer needs and signal the end of the traditional
one-size-fits-all manufacturing approach. Automation advances manufacturing capabilities
by allowing manufacturers to overcome design complexities and better integrate
customer expectations into the design process. Industry 5.0 is the next stage
of human-machine collaboration, combining human intelligence and advanced
cognitive computing to ensure the highest levels of efficiency, safety, and
environmental protection in manufacturing. These elements would propel the
development of machine vision systems in the semiconductor industries.
Complex Design and Multiple Firms and Activities
Semiconductor design is divided into two
categories: Hardware Design and Software Development. Product definition and
specification, system design, integrated circuit design, and post-silicon
validation are all part of the hardware design process. As design grows more
complex, it becomes an increasingly iterative process, especially for leading
players.
Recent Developments
- As
part of Saudi Arabia’s Vision 2030 Program, from 2021, many telecom companies
such as Mobily, Zain KSA, and others revealed to focus on the development of
the 5G Network in the country and to upgrade its LTE infrastructure. The
initiative in 5G developments is projected to be an essential opportunity for
the communication sector in Saudi Arabia.
Market Segments
Saudi Arabia semiconductor market is segmented into
component, application, type, material type and region. Based on component, the market is segmented into memory
devices, microprocessors, analog IC, sensors, discrete power devices, and others.
Based on application, the market is segmented into IT & telecom,
automotive, consumer electronics, and other industries. Based on type, the
market is segmented into extrinsic semiconductors and intrinsic semiconductors.
Based on material type, the market is segmented into silicon, germanium, and
gallium arsenide. Based on region, the market is segmented into northern,
central, eastern, western, and southern.
Market Players
Saudi Arabia Semiconductor
Market players include Atlas Copco Saudi Arabia, SAMI Advanced Electronics, WIKA
Saudi Arabia LLC, Hitachi Energy Ltd., Hon Hai Precision Industry Co., Ltd.
|
Attribute
|
Details
|
|
Base Year
|
2022
|
|
Historic Data
|
2018
– 2022
|
|
Estimated Year
|
2023
|
|
Forecast Period
|
2024
– 2028
|
|
Quantitative Units
|
Revenue in USD Million and CAGR for 2018-2022 and 2023-2028
|
|
Report coverage
|
Revenue
forecast, company share, growth factors, and trends
|
|
Segments covered
|
Component
Application
Type
Material Type
Region
|
|
Regional Scope
|
Northern
Central
Eastern
Western
Southern
|
|
Key companies profiled
|
Atlas Copco Saudi
Arabia, SAMI Advanced Electronics, WIKA Saudi Arabia LLC, Hitachi Energy
Ltd., Hon Hai Precision Industry Co., Ltd.
|
|
Customization scope
|
10%
free report customization with purchase. Addition or alteration to country, regional
& segment scope.
|
|
Pricing and purchase options
|
Avail customized purchase options to meet your exact research needs.
Explore purchase options
|
|
Delivery Format
|
PDF
and Excel through Email (We can also provide the editable version of the report
in PPT/Word format on special request)
|
Report
Scope:
In this report,
Saudi Arabia Semiconductor Market has been segmented into following categories,
in addition to the industry trends which have also been detailed below:
·
Saudi
Arabia Semiconductor Market, By Component:
o Memory Devices
o Microprocessors
o Analog IC
o Sensors
o Discrete Power Devices
o Others
·
Saudi
Arabia Semiconductor Market, By Application:
o IT & Telecom
o Automotive
o Consumer Electronics
o Other Industries
·
Saudi
Arabia Semiconductor Market, By Type:
o Extrinsic Semiconductor
o Intrinsic Semiconductor
·
Saudi
Arabia Semiconductor Market, By Material Type:
o Silicon
o Germanium
o Gallium Arsenide
·
Saudi
Arabia Semiconductor Market, By Region:
o Central
o Western
o Eastern
o Southern
o Northern
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in Saudi Arabia Semiconductor Market.
Available Customizations:
Saudi Arabia Semiconductor Market with the
given market data, Tech Sci Research offers customizations according to a company’s
specific needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to five).
Saudi Arabia Semiconductor Market is an upcoming report to be released soon. If you wish an early delivery
of this report or want to confirm the date of release, please contact us at [email protected]