Oman Bets Big on Chips: OIA Attracts 3 Global Semiconductor Firms in $38M Push

Oman is making a bold play to become a regional semiconductor hub. The Oman Investment Authority (OIA), through its ICT subsidiary ITHCA Group, has attracted three global chip companies to establish operations in the Sultanate, bringing in a combined investment of RO 14.63 million (approximately US$38 million). The move positions Oman at the center of a global industry that underpins everything from AI and 5G to electric vehicles and cloud computing.

📌 Key Takeaways

• Three US-based semiconductor firms (GSME, Lumotive, Movandi) have set up operations in Oman
• Combined investment of $38 million across chip design, optical sensing, and 5G semiconductors
• 92 Omani graduates trained in chip design, with 67 already employed in the sector
• The initiative aligns with Oman Vision 2040's push to diversify beyond oil into high-tech manufacturing
• Semiconductors are the backbone of AI, 5G, and cloud infrastructure, all priorities for Oman's digital economy

🏭 The Three Companies Setting Up in Oman

Each of the three firms brings a distinct specialization to Oman's nascent semiconductor ecosystem, covering chip design, optical AI technologies, and 5G wireless solutions.

GSME: Full-Stack Chip Design Center

US-based GSME has invested RO 5 million ($13 million) to establish a fully integrated semiconductor design center in Oman. The company focuses on RF (radio frequency) chips, power solutions, and semiconductor manufacturing processes. Critically, GSME has already trained 92 Omani graduates in chip design, with 67 of them securing full-time employment in the field. This is perhaps the most impactful element of the entire initiative: Oman is not just attracting investment, it is building a local talent pipeline in one of the world's most in-demand engineering disciplines.

Lumotive: AI-Powered Optical Sensing

Lumotive, also US-based, has committed RO 1.93 million ($5 million) to its Oman branch. The company specializes in programmable optics and Light Control Metasurface (LCM) technology for 3D sensing. This is the kind of deep-tech that powers autonomous vehicles, robotics, and industrial automation. Lumotive's presence in Oman introduces advanced optical and AI technologies that could eventually support the Sultanate's smart city and logistics ambitions.

Movandi: 5G Semiconductor Leader

The largest single investment comes from Movandi, which is putting in RO 7.7 million ($20 million) to establish a subsidiary in Oman. Movandi is a leader in 5G semiconductor technology, specializing in RF chipsets, beamforming solutions, and smart antenna development. With Oman's 5G rollout accelerating (Vodafone Oman recently surpassed 1 million 5G subscribers), having a 5G chip company operating locally creates a natural synergy between infrastructure deployment and the components that power it.

🔬 Why Semiconductors Matter for Oman's Tech Future

Semiconductors are often called the "new oil" of the global economy, and for good reason. Every AI model running in a data center, every 5G tower transmitting data, and every smart device in a citizen's pocket depends on chips. The global semiconductor market is projected to exceed $1 trillion by 2030, and countries around the world are racing to secure their positions in the supply chain.

For Oman, the strategic logic is compelling. The Sultanate already has growing data center capacity, an expanding 5G network, and ambitious AI plans (including the UNESCO-recommended national AI supercomputer). Having semiconductor design capabilities locally means Oman is not just a consumer of these technologies but a contributor to the value chain that produces them.

The focus on chip design rather than fabrication is also smart. Building a semiconductor fabrication plant (fab) costs tens of billions of dollars and requires years of construction. Chip design, on the other hand, requires skilled engineers, software tools, and relatively modest capital, making it an ideal entry point for a country building its tech sector.

👩‍💻 Building Oman's Chip Design Workforce

The talent development numbers deserve special attention. GSME's training of 92 Omani graduates in chip design, with 67 already working in the sector, represents exactly the kind of high-value job creation that Vision 2040 envisions. Semiconductor design engineers are among the highest-paid professionals in the global tech industry, and these roles cannot be easily outsourced or automated.

This also builds on the broader momentum in Oman's tech talent pipeline. The Ministry of Transport, Communications and Information Technology (MTCIT) recently reported that over 11,000 Omanis have been trained through the Makin digital skills initiative since 2021, and the government invested RO 79 million in AI between 2021 and 2025. The semiconductor training adds a hardware dimension to what has primarily been a software-focused talent strategy.

🏗️ ITHCA Group: OIA's Tech Investment Arm

ITHCA Group, the ICT subsidiary of the Oman Investment Authority, has been the driving force behind attracting these companies. ITHCA's role as a specialized tech investment vehicle allows OIA to offer semiconductor firms not just capital but also connections to Oman's broader technology ecosystem, including telecom operators, data center providers, and government digital initiatives.

This targeted approach, using a dedicated tech subsidiary to attract specific types of companies, mirrors strategies used by other successful tech hubs in the region. The UAE's Abu Dhabi Investment Office (ADIO) and Saudi Arabia's NEOM have used similar models to attract deep-tech companies with strategic incentives and ecosystem support.

🌍 Oman in the Global Chip Race

Oman's semiconductor push comes at a time when the global chip industry is undergoing a massive geographic redistribution. The US CHIPS Act, Europe's Chips Act, and major investments by Japan, South Korea, and India are all reshaping where semiconductors are designed and manufactured. In the Gulf, the UAE has also been investing in chip design capabilities, particularly through its AI-focused companies like G42.

Oman's $38 million investment is modest compared to these multi-billion-dollar programs, but its focused approach on chip design (rather than fabrication) and its emphasis on local talent development could yield outsized returns. A small number of highly skilled chip designers can generate enormous value, and establishing Oman's reputation in this field early positions the country to attract larger investments as the sector matures.

🎯 Connection to Vision 2040

The semiconductor initiative directly supports several pillars of Oman Vision 2040:

• Economic diversification: Moving beyond oil into high-value technology manufacturing and design
• Human capital development: Creating skilled jobs for Omani graduates in a globally competitive field
• Innovation ecosystem: Building the foundational technology capabilities that support AI, 5G, IoT, and smart city initiatives
• Foreign investment attraction: Demonstrating Oman's ability to attract cutting-edge technology companies

Oman's digital economy contributed RO 800 million to GDP in 2024, and the government targets this to reach 10% of GDP by 2040. Having local semiconductor design capabilities strengthens the entire digital value chain, from the chips in devices to the AI models running in Omani data centers.

🇴🇲 Why This Matters for Oman

This is more than a $38 million investment story. It signals that Oman is thinking strategically about where it fits in the global technology supply chain. While many countries in the region focus on being consumers and deployers of technology, Oman is positioning itself as a contributor to the foundational hardware layer.

The combination of three complementary companies (chip design, optical sensing, and 5G semiconductors) creates a mini-ecosystem that can grow over time. As these firms establish their Oman operations, they will likely attract suppliers, partners, and additional talent, creating a flywheel effect.

For Omani tech professionals and graduates, this opens up career paths that simply did not exist in the country before. Chip design, RF engineering, and optical systems are fields where Oman can build genuine expertise, not just import it.

The message is clear: Oman is not just building data centers and rolling out 5G. It wants a seat at the table where the underlying technology is designed.

📚 Sources

• Muscat Daily, "OIA attracts 3 global chip firms to expand tech sector," 23 March 2026
• Zawya, "OIA attracts 3 global chip firms to expand Oman's tech sector," 23 March 2026
• The Arabian Stories, "OIA expands semiconductor investments in Oman, boosting jobs and innovation," 23 March 2026
• Times of Oman, "Oman's semiconductor sector witnessing robust expansion," March 2026
• Muscat Daily, "MTCIT unveils new drive to expand digital economy," 10 March 2026