Rimal Semiconductors, a fabless semiconductor design company based in Riyadh, Saudi Arabia, has closed a bridge funding round led by Keheilan Asset Management (KAM) and an unnamed regional investor. The company will use the capital to scale its chip design operations and forge new global partnerships, solidifying its position in a rapidly evolving semiconductor landscape.
Building a Saudi Semiconductor Industry
Founded in 2025 by Houssam Salem, Rimal designs high-performance power chips while outsourcing manufacturing to foundries in Taiwan, South Korea, and China. The company is also actively exploring partnerships with US-based manufacturers to diversify its production network. This approach reflects a strategic move towards geopolitical resilience in the semiconductor supply chain.
Rimal’s business model centers on Saudi-owned intellectual property coupled with a deliberately diversified manufacturing strategy. This is not just about business; it’s about national economic diversification and reducing reliance on volatile global markets. The startup currently has six contracts in the pipeline, targeting sectors like defense, power grid infrastructure, and data centers, including a confirmed deal with a major Egyptian conglomerate.
Navigating Global Supply Chain Fragmentation
The semiconductor industry is undergoing significant restructuring, driven by US-China trade tensions. Rimal’s strategy is a pragmatic response: anchor the core IP in Saudi Arabia while spreading manufacturing across multiple geographies. This approach ensures business continuity regardless of geopolitical shifts. The company is also negotiating a regional distribution agreement to expand its reach across key markets including Turkey, Egypt, Morocco, Tunisia, and the UAE.
Saudi Arabia’s Ambitious Semiconductor Goals
Rimal’s growth is aligned with Saudi Arabia’s broader push to establish a robust domestic semiconductor design sector. In June 2024, the Kingdom launched the National Semiconductor Hub, aiming to host at least 50 such companies by 2030. This initiative is backed by over $266 million in venture capital, government funding, and a plan to train 5,000 engineers in semiconductor design. The hub is supported by major entities including the Public Investment Fund subsidiary Alat Semiconductors, King Abdulaziz City for Science and Technology, and KAUST.
By diversifying manufacturing and investing in local talent, Rimal is not just building a company – it’s contributing to a national strategy for technological independence.
The startup’s emphasis on local talent development, including hands-on training and knowledge transfer programs, further reinforces Saudi Arabia’s commitment to long-term sustainability in the semiconductor industry. This investment in human capital is critical for the Kingdom’s ability to compete globally.
Rimal Semiconductors represents a notable step forward in Saudi Arabia’s efforts to build a high-tech economy, positioning the nation as a strategic player in the global semiconductor market.
