The global semiconductor industry has developed into one of the core industries to enhance international competitiveness, and the independence, diversification, and security of the supply chain are the key concerns of all parties. China, the United States, the European Union, Japan and South Korea and other countries or regions have strengthened their semiconductor industry layout and stabilized their supply chain systems. Under this, another country is attacking semiconductors.

According to Bloomberg, Saudi Arabia recently announced the establishment of a National Semiconductor Center, focusing on developing the IC design ecosystem, with the goal of attracting 50 companies to settle in by 2030 and creating the "Silicon Valley of Saudi Arabia". Currently, three companies have signed up to join the plan, and ten companies have expressed interest.

The head of the center, Naveed Sherwani, stated that the plan will focus on simpler chips rather than cutting-edge technology, and chip manufacturing will continue to take place in international foundries at least in the medium term.

According to reports, Saudi Arabia has launched a new strategy aimed at becoming a chip design center, aiming to promote diversified economic development and reduce dependence on crude oil. Its broader vision is to become a regional leader in advanced technology, and plans to establish a data center, artificial intelligence company, and chip manufacturing base.

On June 5th, Saudi Arabia also announced the launch of a 1 billion riyal (approximately 270 million US dollars) fund, focusing on investing in semiconductor startups, supporting innovative technologies and business models, with the aim of promoting technological development and industrial upgrading in Saudi Arabia and the Middle East region.

According to reports, Saudi Arabia's public investment fund (investing in American technology startups) has allocated $40 billion to invest in artificial intelligence technology. According to the New York Times in March, the fund is collaborating with top US companies, including Andreessen Horowitz.

Observing the dynamics of various parties, global semiconductor competition is trending towards white heat

Nowadays, semiconductors have become an important source of global economic growth. From the deployment dynamics of various countries this year, various relevant policies have been actively introduced by various parties around the world to subsidize the semiconductor industry and support the development of related enterprises, which is conducive to the sustained high-quality development of the semiconductor industry.

On the US side, the Chip and Science Act was introduced in August 2022, which plans to provide $52.7 billion in funding for US chip research, development, manufacturing, and labor development, as well as a 25% investment tax credit for capital expenditures on manufacturing chips and related equipment.

This year, multiple manufacturers have received funding subsidies from the United States, including Micron ($6.14 billion), Samsung ($6.4 billion), TSMC ($6.6 billion), Microelectronics ($162 million), and Intel ($8.5 billion). Among them, Intel received $8.5 billion, which is the most funding provided by the US Chip Act so far. Intel will use this funding to drive the progress of its commercial chip projects in Arizona, New Mexico, Ohio, and Oregon.

On the European side, the European Chip Act officially came into effect in September 2023, with the goal of increasing the EU's share in the global semiconductor market from the current 10% to at least 20% by 2030. The bill promises to mobilize 43 billion euros (approximately 46.4 billion US dollars) in subsidy funds, of which 11 billion euros (approximately 11.8 billion US dollars) will be used for the research and development of advanced process chip technology. It is reported that major companies such as Intel and TSMC have announced plans to build wafer factories in Germany in the European region and are expected to receive government subsidies.

Officials from the European Commission have stated that the European Chip Act is expected to help the European semiconductor industry attract over 100 billion euros (approximately 108 billion US dollars) of funding by 2030. The European Commission plans to complete the review of funding plans for four advanced semiconductor pilot lines before September, and is currently planning another silicon photonics chip pilot line with unknown investment scale.

From the perspective of the Asian region, in addition to Saudi Arabia located in West Asia, East Asian regions such as China, South Korea, and Japan, as well as Southeast Asian regions such as Malaysia and Singapore, India and other South Asian regions have never stopped their pace of semiconductor layout in recent years.

On the Japanese side, Japan has provided a large amount of subsidies and actively promoted wafer foundry and storage industries. In April, Japan approved a subsidy of up to $3.9 billion to Rapidus, a local semiconductor manufacturing company that plans to mass produce 2-nanometer chips in 2027; And announced the provision of 242.9 billion yen (1.546 billion US dollars) to subsidize Kazuma and Western Digital for the construction of two state-of-the-art NAND flash chip production factories in Mie Prefecture and Iwate Prefecture to meet the needs of artificial intelligence and big data centers. The above-mentioned joint venture factory will have 218 layers of 3D NAND chips.

On May 23rd, South Korea announced a comprehensive support plan for the semiconductor industry worth up to 26 trillion Korean won (approximately 19 billion US dollars), which includes providing large-scale financing support, expanding investment in the construction of semiconductor parks and various infrastructure and R&D personnel cultivation, involving enterprises such as chip manufacturers, raw material suppliers, and chip design enterprises. The core content of this plan is for the Industrial Bank of Korea to establish a financing support project worth 17 trillion Korean won (approximately 12.4 billion US dollars) specifically for infrastructure investment in the semiconductor industry. At the same time, South Korea will extend tax incentives for chip investment to ensure smooth investment in semiconductor super clusters.

In addition, South Korean President Yoon Seok yeol announced in April this year that in order to maintain the global leading position in cutting-edge semiconductor chips, South Korea will increase investment in artificial intelligence (AI) and semiconductors by 2027.

Malaysia: According to its national semiconductor strategy, Malaysia will allocate at least $5.3 billion (NT $170 billion) over the next 5-10 years to cultivate talent and develop local companies. Countries in Malaysia include Intel, Micron, and Infineon.

Previously, Malaysian Prime Minister Anwar announced in May that the country would train 60000 high-tech local semiconductor engineers, moving towards a global chip center.

On the Indian side, the Indian government hopes to build India into an electronic manufacturing center with an annual output value of $400 billion by 2025. In 2021, the Indian government approved a $10 billion semiconductor incentive measure, and eligible companies can submit proposals to the Indian government to apply for this funding. It is reported that major companies such as Intel, AMD, and Micron have gone to India to build related factories or research and development centers.

Ashvini Vishnau, Minister of Electronics and Information Technology of India, announced in February this year that he approved the establishment of three semiconductor factories with a total value of 1256 billion rupees (15.2 billion US dollars). This includes the first 12 inch wafer fab in India jointly built by Tata Group and Powerchip, as well as two packaging and testing factories built by Tata Group and CG Power, a subsidiary of the Indian conglomerate Murugappa. These factories will start construction within the next 100 days and, after production, will manufacture and package chips for industries such as India's defense, automotive, and telecommunications.