Saudi Arabia’s $100 billion electronics fund removes CEO

RIYADH — Saudi Arabia’s Public Investment Fund (PIF) has removed Amit Midha as CEO of Alat, its flagship $100 billion electronics investment vehicle, and the company has abandoned its ambitions to enter semiconductor production, according to people familiar with the matter.

The decision comes amid a broader internal review of the kingdom’s spending priorities, which has already led to the cancellation or scaling back of several high-profile, ambitious projects as part of efforts to tighten fiscal discipline while pursuing Vision 2030 economic diversification goals.

Midha, a former senior Dell executive, was recruited three years ago to lead Alat and was widely seen as the driving force behind its aggressive push into advanced electronics manufacturing, including semiconductors, artificial intelligence hardware, and related supply chains. He was appointed well before the fund’s formal launch in early 2024, which was announced with considerable fanfare and placed directly under the chairmanship of Crown Prince Mohammed bin Salman.

Strategic Pivot in Saudi Tech Ambitions

Alat was created as a cornerstone of Saudi Arabia’s drive to reduce dependence on oil by building a domestic electronics manufacturing ecosystem. The fund had set ambitious targets to attract global partners, establish local production facilities for everything from smartphones and servers to advanced chips, and position the kingdom as a competitive player in the global semiconductor industry.

However, those semiconductor-specific plans have now been dropped, sources told Semafor. The shift reflects a reassessment of capital allocation priorities at a time when the kingdom is navigating volatile global energy markets, regional geopolitical tensions, and the need to balance large-scale investments across multiple sectors.

No official reason has been given for Midha’s removal. PIF and Alat have not issued public statements on the leadership change or the strategic pivot.

The move comes as Saudi Arabia continues to deploy its sovereign wealth fund across a wide range of sectors — from entertainment and sports to renewable energy, tourism, and advanced technology — to create sustainable, non-oil revenue streams. Alat was one of the most visible symbols of the kingdom’s high-tech aspirations, with plans that included building factories in Riyadh and forging partnerships with leading international technology firms.

While the core electronics manufacturing focus appears to remain intact, the decision to step back from semiconductor production suggests a more measured approach to capital-intensive, high-risk segments of the tech supply chain.

Semiconductors require massive upfront investment, long development timelines, and complex global partnerships — areas that have proven challenging even for established players.

Analysts note that this recalibration aligns with recent signals from Riyadh that some of the most ambitious elements of Vision 2030 may be tempered to ensure fiscal sustainability amid fluctuating oil revenues and competing domestic priorities.

The leadership change at Alat is expected to trigger further internal reviews and potential restructuring within the organisation. Industry observers will be watching closely to see who succeeds Midha and whether Alat’s revised strategy will maintain its original goal of transforming Saudi Arabia into a significant player in the global electronics value chain.

As of now, neither PIF nor Alat has commented publicly on the developments. Further details on the fund’s updated investment priorities are anticipated in the coming weeks.