January 2026 Updates for Design Engineers
Read the latest semiconductor and electronics news and updates.
In this edition:
1- Qatar and UAE Join U.S-Led Pax Silica Initiative
In January 2026, Qatar and the United Arab Emirates joined the U.S.-led Pax Silica Initiative, a framework aimed at strengthening cooperation on global technology and semiconductor supply chains.
For Qatar, official statements described participation as a step toward deeper cooperation in cloud infrastructure, semiconductors, advanced computing and digital technologies. Qatari officials pointed to expanding investments in the digital economy, including artificial intelligence programs and U.S.-linked cloud and data-center infrastructure, as areas that would benefit from closer coordination with Washington and other member states.
Speaking at the signing ceremony in Doha, Qatar’s Minister of State for Foreign Trade Affairs, Ahmed Al-Sayed, said the global economy is undergoing a major transformation driven by artificial intelligence, increasing energy and mineral demand and rapid technological change. He described the Pax Silica declaration as “a new milestone in the Qatar–US partnership, founded on trust, shared interests and a unified vision for advancing stability and prosperity.”
The UAE’s accession has been framed around its role as a regional logistics and connectivity hub. U.S. and Emirati officials highlighted cooperation in data centers, advanced manufacturing, logistics, mineral processing, energy systems and future connectivity technologies such as 6G, positioning the UAE as an operational link within global technology and supply chains.
Gulf media have noted that for both Qatar and the UAE, joining Pax Silica provides access to technology partnerships, investment channels and policy coordination as they pursue economic diversification beyond hydrocarbons. Participation also places both states more firmly within U.S.-led discussions on technology governance and supply-chain security.
U.S. officials involved in the initiative have stated that Pax Silica is intended to support long-term economic transition in regions traditionally dependent on energy exports, with an emphasis on advanced technologies and secure supply chains.
As initiatives like Pax Silica place greater emphasis on supply-chain security, policy alignment and trusted technology partnerships, access to reliable semiconductor sourcing becomes increasingly critical for regional system developers. McKinsey Electronics supports customers across the GCC by providing engineering-driven distribution and secure sourcing, thus helping translate global coordination frameworks into deployable electronics and semiconductor solutions.
2- Historic Global Semiconductor Revenue: $1 Trillion
Global semiconductor revenues are projected to surpass $1 trillion in 2026, marking a historic milestone for the industry. Growth is being driven primarily by sustained demand for AI accelerators, data-center infrastructure, memory, automotive electronics and advanced connectivity technologies, according to industry forecasts.
The strongest contribution comes from AI and data-centric computing, where demand for processors, accelerators, and high-performance memory continues to outpace traditional consumer electronics segments. Technologies such as GPUs, AI accelerators, DRAM, NAND flash and High Bandwidth Memory (HBM) are seeing elevated demand as hyperscalers and enterprises expand AI training and inference capacity in data centers.
Logic and memory integrated circuits account for the largest share of revenue growth, reflecting the central role of semiconductors in AI workloads and cloud infrastructure. Advanced packaging technologies, including chiplet architectures and 2.5D/3D integration, are also contributing by enabling higher performance and efficiency in compute platforms.
Automotive electronics remains another structural growth area, driven by increased semiconductor content in electric vehicles, advanced driver-assistance systems (ADAS), power electronics and in-vehicle connectivity. At the same time, demand for 5G and early 6G-related components, industrial connectivity and edge computing continues to expand the market beyond traditional end devices.
The projected revenue milestone reflects a broader shift in the global economy, where semiconductors are no longer peripheral components but core infrastructure enabling AI deployment, electrification, connectivity and national digital strategies. Governments and enterprises are increasingly prioritizing semiconductor availability, supply-chain resilience and long-term sourcing as part of economic and technology planning.
McKinsey Electronics supports customers across Türkiye, the GCC, and North and South Africa by enabling access to global semiconductor technologies through engineering-driven distribution and secure sourcing. As industry revenues scale around AI, data centers, automotive and connectivity, McKinsey Electronics helps regional system developers manage availability, compliance and lifecycle requirements in an increasingly complex semiconductor market.
3- G42 to Receive First AI Chip Shipments for Stargate
G42 confirmed it will receive its first shipments of advanced AI chips within months, enabling the initial phase of its planned Stargate UAE data-center cluster. The deliveries will support approximately 200 MW of compute capacity, marking a key step in scaling large-scale AI infrastructure in the United Arab Emirates.
The announcement was made by Peng Xiao, Group CEO of G42, during the World Economic Forum in Davos, where he stated that chip deliveries are expected shortly and that the company plans to scale capacity in phased increments following the initial deployment. The Stargate project forms part of a broader effort to establish sovereign AI compute infrastructure in the UAE.
The first phase of Stargate UAE is expected to rely on high-performance AI hardware from Nvidia, Advanced Micro Devices and Cerebras Systems, following U.S. approval for the export of advanced AI chips to the UAE. These approvals were granted after assurances related to export controls and trusted-computing requirements.
Stargate UAE is part of the UAE–U.S. AI Campus initiative in Abu Dhabi and is designed to scale beyond the initial 200 MW toward gigawatt-level capacity. Construction and operations are being supported by Khazna Data Centers, a G42 affiliate specializing in hyperscale facilities.
The Stargate UAE project highlights the rapid expansion of AI infrastructure in the United Arab Emirates, as demand grows for local, high-performance compute to support AI training and inference. Dubai-based McKinsey Electronics supports customers across the UAE by enabling access to advanced semiconductor technologies and secure sourcing pathways, helping system developers and integrators deploy compliant AI and data-center infrastructure as national compute capacity scales.
4- Saudi's Humain Raises $1.2bn for AI Data Data Centers
Humain has secured up to $1.2 billion in financing from National Infrastructure Fund to accelerate the expansion of artificial intelligence and digital infrastructure in Saudi Arabia.
The funding will support the development of up to 250 megawatts (MW) of AI data-center capacity, strengthening the Kingdom’s efforts to build large-scale, semiconductor-powered compute platforms. The investment aligns with Saudi Arabia’s broader push to expand domestic AI capability and cloud infrastructure as part of Vision 2030.
Humain’s expansion is aimed at supporting high-performance AI workloads, including model training and inference, which require dense compute, advanced accelerators, high-bandwidth memory and reliable power and cooling infrastructure. The project reflects increasing regional demand for sovereign AI compute capacity as governments and enterprises seek to localize critical digital infrastructure.
Saudi Arabia has identified AI and advanced computing as strategic pillars for economic diversification, with growing investment in data centers, cloud platforms and semiconductor-enabled systems. The Humain financing adds to a broader wave of capital deployment targeting hyperscale and AI-focused facilities across the Kingdom.
As AI data-center capacity expands in the region, access to advanced semiconductors, power electronics, connectivity components and supporting infrastructure becomes increasingly critical. McKinsey Electronics supports customers in the GCC by enabling access to global semiconductor technologies and secure sourcing pathways, helping system developers and integrators deploy compliant, large-scale AI and data-center infrastructure.
5- Turkiye: Mass Production of Chips
Yongatek Microelectronics and Beko are co-developing a domestically designed microcontroller (MCU) for use in household appliances, marking a significant step in Türkiye’s efforts to localize semiconductor production. Prototypes entered production in late 2025, with mass production scheduled to begin in 2026.
The project is being developed under HIT-30 Program, Türkiye’s national initiative aimed at supporting strategic, high-value manufacturing sectors. Once fully ramped, the microcontroller program is expected to target tens of millions of units annually, focused on applications in consumer appliances, Internet of Things (IoT) systems and defense-related electronics.
Officials and project partners have described the initiative as a concrete move to reduce Türkiye’s reliance on imported chips in high-volume, application-specific segments. Rather than pursuing leading-edge fabrication, the program focuses on mature-node, high-reliability MCUs, which are widely used in white goods, industrial control systems and embedded applications where long product lifecycles and supply continuity are critical.
The development reflects a broader push by Türkiye to strengthen domestic capabilities across semiconductor design, validation and production, particularly in areas aligned with existing industrial strengths such as appliances and industrial electronics. By anchoring microcontroller development locally, the project aims to improve supply security while supporting downstream manufacturing ecosystems.
As regional semiconductor activity expands beyond design into localized production, access to complementary components, system integration expertise and reliable distribution channels remains essential. McKinsey Electronics supports customers in Türkiye and across the region by enabling access to global semiconductor technologies and supporting secure, application-specific deployment, complementing emerging domestic initiatives with engineering-driven distribution and supply-chain support.
6- Egypt Broadens AI Council Scope, Adds Quantum Computing
Egypt’s cabinet has approved expanding the mandate of the National Council for Artificial Intelligence to include quantum computing, biotechnology and other emerging technologies, formally renaming it the National Council for Artificial Intelligence, Quantum Computing and Emerging Technologies.
The decision reflects Egypt’s effort to update its digital governance framework in line with global technology trends. According to official statements, the expanded mandate is intended to support the development of regulatory and ethical frameworks covering advanced technologies, while enabling coordination across government bodies, academia and the private sector.
The revised council will oversee national strategies related to artificial intelligence and emerging technologies, with a focus on supporting innovation, startups, research initiatives and international cooperation. Officials have indicated that the move aims to improve policy alignment as advanced computing, data-driven systems and next-generation technologies become more central to economic competitiveness.
Egypt has been increasing its focus on digital transformation and technology-led growth, and the expanded council structure places advanced computing fields such as quantum technologies within the country’s long-term planning and governance framework.
As regional governments expand oversight of advanced digital technologies, McKinsey Electronics, headquartered in Dubai, enables customers in North Africa and the region to access global semiconductor technologies while supporting regulatory-aligned electronics deployment.