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Ministry of Communications Unveils Roadmap for Building Deep Tech Ecosystem in Saudi Arabia

Ministry of Communications Unveils Roadmap for Building Deep Tech Ecosystem in Saudi Arabia
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Ministry of Communications Unveils Roadmap for Building Deep Tech Ecosystem in Saudi Arabia

Ministry of Communications Unveils Roadmap for Building Deep Tech Ecosystem in Saudi Arabia

The Ministry of Communications and Information Technology (MCIT), in partnership with King Abdullah University of Science and Technology (KAUST) and in collaboration with "Hello Tomorrow," has launched the Deep Tech Report, highlighting the current state and future prospects of the deep tech ecosystem in Saudi Arabia and key initiatives supporting the goals of Saudi Vision 2030.

The report aims to shed light on the opportunities and potential in this vital sector, recognized as a cornerstone for advancing the digital economy and sustainable development, reported the Saudi Press Agency on Monday.

It focuses on five primary pillars of Saudi Arabia’s deep tech ecosystem: deep tech ecosystem, investment, infrastructure and ecosystem enablers, talent, and policies, regulations, and government incentives. It also emphasizes the role of research, development, and innovation in positioning Saudi Arabia as a global hub for advanced technologies.

The report reveals significant growth in the deep tech sector, with 50% of startups focusing on artificial intelligence (AI) and the Internet of Things (IoT). There are more than 43 high-growth startups driving innovation in the Kingdom, collectively securing over $987 million in funding in 2022, supported by 104 investors. Additionally, the number of researchers in Saudi Arabia has risen by 75% since 2015, reflecting the nation’s commitment to advancing research and development.

Vice Minister for Technology Mohammed Robayan stated that the report represents an important step in strengthening Saudi Arabia’s position as a global destination for advanced technologies. By prioritizing innovation and investing in talent and infrastructure, the Kingdom aims to build an integrated ecosystem that supports digital transformation and sustainable development.

He encouraged stakeholders in the public and private sectors, particularly academic institutions and investors, to leverage the report’s insights to create a roadmap that fosters innovation and contributes to achieving the goals of Saudi Vision 2030.

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Samsung’s Preliminary Q4 Profit Falls Far Short of Estimates as Chip Issues Drag

Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)
Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)
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Samsung’s Preliminary Q4 Profit Falls Far Short of Estimates as Chip Issues Drag

Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)
Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)

Samsung Electronics' preliminary fourth-quarter operating profit missed estimates by a large margin, with the South Korean tech giant hit hard by extra costs as it works towards providing high-end chips to Nvidia.

Its earnings were dented by rising research and development costs and the ramp-up of manufacturing capacity for advanced semiconductors, the company said in a statement. Slowing demand for conventional memory chips used in PCs and mobile phones also weighed on earnings, it added.

The world's largest memory chip, smartphone and TV maker expects to log an operating profit of 6.5 trillion won ($4.5 billion) for the three months ended Dec. 31, well below an LSEG SmartEstimate of 7.7 trillion won.

The expected profit is 131% higher than the same period a year earlier, but down 29% from a disappointing third quarter. Preliminary revenue came in at 75 trillion won, slightly lower than analysts' estimates.

Rival SK Hynix is Nvidia's main supplier of high-bandwidth memory (HBM) chips used in artificial intelligence graphics processing units (GPUs) whereas Samsung has struggled to meet Nvidia's requirements.

Nvidia CEO Jensen Huang told reporters in Las Vegas on Tuesday that Samsung has to "engineer a new design" to supply HBM chips to his company, adding that "they can do it and they are working very fast," Korea JoongAng Daily reported.

Samsung said at the time of its third-quarter earnings that it was making progress in supplying HBM chips to Nvidia but has not made any public updates since then.

Greg Noh, an analyst at Hyundai Motor Securities, said Samsung's profit was possibly eroded by one-off costs as well as disappointing chip and display earnings.

Samsung finished 3.4% higher with analysts attributing the gain to the sense that the company's woes had already been factored in and were unlikely to get worse.

"There are concerns about Samsung's major businesses continuing to lose competitiveness. But chip demand may have bottomed already," said Lee Min-hee, an analyst at BNK Investment & Securities, adding that smartphone demand in China may gradually improve.

Shares of Samsung, South Korea's biggest company by market value, slumped 32% last year, far more than a 10% decline for the wider market.

By contrast, SK Hynix is expected to post record earnings for the fourth quarter and its stock surged 23% last year.

Samsung will release detailed fourth-quarter results on Jan. 31.

RISING COMPETITION

Samsung said fourth-quarter earnings also fell for its division that designs and manufactures logic chips, hit by slower mobile phone demand, lower utilization rates at its factories and higher research and development costs.

The division may have widened losses to about $1.5 billion in the fourth quarter from about $960 million in the preceding quarter due to struggles to increase production yields, analysts said.

Earnings for its devices business, which includes mobile phones, TVs and household appliances, dropped as it has been some time since new mobile phone models were launched and because competition has increased, Samsung said.

Analysts said its mobile division earnings may have declined year on year due to lower sales for its premium foldable phones.

Slowing demand likely offset the positive impact of weakness in the local currency which boosts earnings from overseas.

The South Korean won dropped to its weakest level in 15 years in December after President Yoon Suk Yeol's martial law decree triggered political turmoil. It was also hurt by US President-elect Donald Trump's pledges of higher tariffs on imports.