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Saudi Arabia Launches First Regional Program for Electronic Chips

The Saudi Semiconductor Program aims to support research, development and qualification of human cadres in the field of designing and localizing electronic chips. (Photo: Asharq Al-Awsat)
The Saudi Semiconductor Program aims to support research, development and qualification of human cadres in the field of designing and localizing electronic chips. (Photo: Asharq Al-Awsat)
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Saudi Arabia Launches First Regional Program for Electronic Chips

The Saudi Semiconductor Program aims to support research, development and qualification of human cadres in the field of designing and localizing electronic chips. (Photo: Asharq Al-Awsat)
The Saudi Semiconductor Program aims to support research, development and qualification of human cadres in the field of designing and localizing electronic chips. (Photo: Asharq Al-Awsat)

The King Abdulaziz City for Science and Technology (KACST) announced on Wednesday the launch of the Saudi Semiconductor Program - the first of its kind in the region – which is aimed at supporting research, development and qualification of human cadres in the field of designing and localizing electronic chips.

President of the City of Science and Technology Dr. Mounir El-Desouky inaugurated the Future of Semiconductors Forum - an event organized by KACST and King Abdullah University of Science and Technology (KAUST) - with the participation of Dr. Shuji Nakamura, Nobel Prize winner in physics and specialist in semiconductor technologies, and Dr. Omar Yaghi, winner of the King Faisal Prize in 2015 and the Albert Einstein International Prize for Science in 2017, and Dr. David Ruchien Liu, winner of the King Faisal Prize in Medicine for Gene Editing Technique.

The inauguration ceremony was also attended by the winners of the same prize in the field of science this year, Dr. Nader Masmoudi and Dr. Martin Heyer, as well as a number of local and international experts.

The program aims to conduct scientific research in electronic chip technologies, and qualify human cadres in the field of design and production to support the localization of the semiconductor industry in the Kingdom.

Addressing the forum, Saeed Alshihri, Director of Materials Science Research Institute at KACST, stressed that the localization of the electronic chip and semiconductor industry would contribute to achieving the goals of the Vision 2030 programs.

“Semiconductor technologies are changing the world as they form the basis of vital fields such as energy, sensors, and information technology, and the foundation of the third and fourth industrial revolutions,” he stated.

The forum will continue its work on Friday with three sessions discussing automotive and space electronics, photovoltaic efficiency, sensors and micro-electromechanical systems.

On Wednesday, agreements were signed between a number of government, private and international entities, to promote and localize the semiconductor industry in the Kingdom.

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Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
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Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)

Telecommunications companies listed on the Saudi Stock Exchange (Tadawul) achieved a 12.46 percent growth in their net profits, which reached SAR 4.07 billion ($1.09 billion) during the second quarter of 2024, compared to SAR 3.62 billion ($965 million) during the same period last year.

They also recorded a 4.76 percent growth in revenues during the same quarter, after achieving sales worth more than SAR 26.18 billion ($7 billion), compared to SAR 24.99 billion ($6.66 billion) in the same quarter of 2023.

The growth in the revenues and net profitability is the result of several factors, including the increase in sales volume and revenues, especially in the business sector and fifth generation services, as well as the decrease in operating expenses and the focus on improving operational efficiency, controlling costs, and moving towards investment in infrastructure.

The sector comprises four companies, three of which conclude their fiscal year in December: Saudi Telecom Company (STC), Mobily, and Zain Saudi Arabia. The fiscal year of Etihad Atheeb Telecommunications Company (GO) ends on March 31.

According to its financial results announced on Tadawul, Etihad Etisalat Company (Mobily) achieved a 33 percent growth rate of profits, bringing its profits to SAR 661 million by the end of the second quarter of 2024, compared to SAR 497 million during the same period in 2023. The company also achieved a 4.59 percent growth in revenues to reach SAR 4.47 billion, compared to SAR 4.27 billion in the same quarter of last year.

The Saudi Telecom Company achieved the highest net profits among the sector’s companies, at about SAR 3.304 billion in the second quarter of 2024, compared to SAR 3.008 billion in the same quarter of 2023. The company registered a growth of 4.52 percent in revenues.

On the other hand, the revenues of the Saudi Mobile Telecommunications Company (Zain Saudi Arabia) increased by about 6.69 percent, as it recorded SAR 2.55 billion during the second quarter of 2024, compared to SAR 2.39 billion in the same period last year.

Commenting on the quarterly results of the sector’s companies, and the varying net profits, the head of asset management at Rassanah Capital, Thamer Al-Saeed, told Asharq Al-Awsat that the Saudi Telecom Company remains the sector leader in terms of customer base expansion.

He also noted the continued efforts of Mobily and Zain to offer many diverse products and other services.

Financial advisor at the Arab Trader Mohammed Al-Maymouni said the financial results of telecom sector companies have maintained a steady growth, up to 12 percent, adding that Mobily witnessed strong progress compared to the rest of the companies, despite the great competition which affected its revenues.

He added that Zain was moving at a good pace and its revenues have improved during the second quarter of 2024. However, its profits were affected by an increase in the financing cost by SAR 26.5 million riyals and a rise in interest, while net income declined significantly compared to the previous year, during which the company made exceptional returns.