Saudi Alat Fund Removes CEO Amit Midha, Drops Chip Investment Plans

Alat, a $100 billion electronics manufacturing fund backed The fund was established as part of Saudi Arabia's economic diversification efforts under Vision 2030, with ambitions to build a domestic chip manufacturing capability. The change in leadership and strategy marks a significant pivot away from previous expansion plans in the semiconductor sector. Alat had previously announced partnerships with international technology companies to develop manufacturing capabilities within the kingdom. The fund's shift away from chip production raises questions about the broader feasibility of Saudi Arabia's semiconductor ambitions amid increased global competition and the capital-intensive nature of the industry. The PIF has invested tens of billions in technology and industrial projects as part of its mandate to reduce the kingdom's dependence on oil revenue. The decision to scale back semiconductor investments comes as global chip manufacturers face oversupply challenges and geopolitical pressures affecting the industry.