---
title: Oman announces AI chip manufacturing project - Developing Telecoms
description: Oman has announced plans to start an advanced artificial intelligence (AI) semiconductor chip manufacturing project in Salalah Free Zone, Dhofar in the south of the country, following a memorandum of understanding (MoU) signed on Monday.
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date: 2025-02-25T16:23:59Z
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Oman has announced plans to start an advanced artificial intelligence (AI) semiconductor chip manufacturing project in Salalah Free Zone, Dhofar, in the south of the country, following a memorandum of understanding (MoU) signed on Monday.

The agreement, between Ministry of Transport, Communications and Information Technology (MTCIT) and a company called AONH Private Holdings, is supported by regional and international investment funds.

The partners say the project aims to consolidate Oman’s position in the global semiconductor industry, addressing the rising demand for AI technologies. It will also help develop local expertise in chip design and manufacturing, while attracting international talent, particularly, the partners say, from Taiwan, South Korea and Japan.

H E Dr Ali bin Amer al Shidhani, Undersecretary for Communications and Information Technology in MTCIT, said at the signing that the project aligns with the Digital Industry Programme under the National Programme for Digital Economy and Oman Vision 2040.

Although this story has been widely reported by local and regional press, there seems to be little information about the role, background or function of AONH Private Holdings.

However, company chairman Ali Steve Chao has been quoted as highlighting Oman’s strategic location and investor-friendly environment as key factors in selecting the country for the project. “With this initiative, Oman is set to make its mark on the world stage of chip manufacturing, developing advanced memory solutions and next-generation AI chips,” he said.

He added that the company aims to attract top global talent, creating a hub for researchers, engineers and developers to drive innovation in semiconductor manufacturing, data centres and AI industries.

Production operations are expected to begin three years after the project’s launch.

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