November 2025 Updates for Design Engineers
Read the latest semiconductor and electronics news and updates.
In this edition:
EU Advances “Chips Act 2.0” to Reinforce Global Semiconductor Position
Humain & Qualcomm to deploy 200 MW of AI Infrastructure in Saudi Arabia
Dubai Highlighted as a Regional Semiconductor Hub with Semicon Summit 2025
EU Advances "Chips Act 2.0" to Reinforce Global Semiconductor Position
The European Union is moving forward with plans for a strengthened semiconductor strategy known as “Chips Act 2.0.” Momentum accelerated in late October and November 2025 after industry groups and Member States warned that the original 2023 Chips Act is not sufficient to keep Europe competitive with the United States and Asia. According to Reuters, the European Commission has begun formal consultations with SEMI Europe and other stakeholders to define the scope of an expanded framework.
SEMI Europe’s latest analysis, estimates that approximately €69 billion in public and private semiconductor investments have been mobilized since the adoption of the original Act. However, most of these investments target front-end wafer fabrication, with far less support reaching chip design, materials, equipment manufacturing, or advanced packaging, areas where Europe remains structurally dependent on international suppliers.
This dependency became particularly evident when Dutch authorities imposed temporary restrictions on shipments from Nexperia earlier in Q4, causing concerns among automotive and industrial manufacturers. EU officials were working diplomatically to resolve the situation, underscoring the fragility of Europe’s supply chain and reinforcing calls for a more comprehensive semiconductor strategy.
In response, all 27 EU Member States signed a joint declaration on 29 September 2025 supporting an upgrade to the Chips Act. Early discussions about Chips Act 2.0 include proposals for up to €20 billion in new EU-level funding, separate from national subsidies already backing major fabs in Germany, Italy, and France. This expanded funding is expected to cover design ecosystems, R&D platforms, semiconductor tools, materials, and backend processes, rather than focusing on manufacturing alone.
Industry recommendations have also emphasized the need for faster and more unified permitting procedures. SEMI Europe and multiple policy think tanks, including DIGITALEUROPE and the European Council on Foreign Relations, have argued that delays in state-aid approvals and fragmented national regulations slowed several strategic projects. A harmonized EU approach is seen as essential for improving Europe’s competitiveness and attracting multinational semiconductor partners.
Chips Act 2.0 is further expected to introduce clearer strategic metrics. The EU’s earlier target, reaching 20% of global semiconductor market share by 2030, is considered unrealistic without more systemic support. Analysts now expect the revised policy to focus on capability-building goals, such as meeting Europe’s needs in automotive semiconductors, power electronics, industrial systems, and secure communications.
The European Commission launched a public consultation in September 2025, and a formal legislative draft is anticipated in early 2026. This revision could shape Europe’s semiconductor trajectory for the rest of the decade, influencing investment flows, partnerships, and supply-chain structures.
Humain & Qualcomm to deploy 200 MW of AI Infrastructure in Saudi Arabia
HUMAIN, the Saudi-backed AI firm under the kingdom’s sovereign-wealth fund, and Qualcomm have announced a strategic collaboration to deploy 200 megawatts of advanced AI data-center infrastructure, powered by Qualcomm’s newly launched AI200 and AI250 racks, starting in 2026.
Qualcomm revealed the AI200 and AI250 hardware on 27 October 2025. These new chips are designed specifically for data-center AI inference workloads.
The AI200-backed racks offer large memory capacity and rack-scale performance, while the AI250, slated for 2027 release, brings an advanced memory-architecture design promising higher memory bandwidth and lower power consumption.
Under the partnership, HUMAIN plans to use these AI racks to deliver high-performance AI inference capabilities for enterprises and government clients, effectively building out one of the largest AI-infrastructure deployments in the region.
As part of the deal, Qualcomm will also open a dedicated AI Engineering Center in Riyadh, which will support model onboarding, performance tuning, and edge-to-cloud hybrid AI services.
This move marks a significant milestone in Saudi Arabia’s ambition, under its Vision 2030, to transform into a global hub for AI and technology infrastructure. By combining HUMAIN’s regional reach and full-stack AI ambition with Qualcomm’s semiconductor and data-center technology, the collaboration aims to provide scalable, efficient AI services with a competitive total cost of ownership, regionally and globally.
For the broader semiconductor and AI-infrastructure industries, this announcement signals a growing trend: AI firms backed by sovereign funds are forming deep partnerships with chipmakers — not only to deploy existing AI hardware but to shape future infrastructure investments regionally. For companies in AI, cloud services, edge-computing, and large-scale data-center operations, this could represent a new paradigm in deployment strategy.
Dubai Highlighted as a Regional Semiconductor Hub with Semicon Summit 2025
This December, Dubai will host The Semicon Summit 2025, a landmark gathering that brings together leading semiconductor manufacturers, technology providers, and regional decision-makers from the Middle East, Africa, and Türkiye. Organized by McKinsey Electronics and held at Sofitel The Obelisk, the summit is set to become the region’s most important platform for semiconductor collaboration, connecting global expertise with the GCC’s rapidly accelerating industrial and digital-transformation programs.
The summit arrives at a pivotal moment for the region. According to IDC, investments in AI hardware and data-center infrastructure in the Middle East are growing at more than 25% annually, driven by national programs in mobility, renewable energy, aerospace, and advanced manufacturing. At the same time, the GCC’s demand for reliable semiconductor supply chains continues to expand, prompting governments and enterprises to seek closer partnerships with global component vendors. The Semicon Summit 2025 directly responds to this need by enabling face-to-face engagement between manufacturers and engineering, R&D, and procurement teams from across the region.
Over two days, participants will examine the latest breakthroughs in AI accelerators, power electronics, automotive semiconductors, and IoT/edge systems, while addressing critical regional challenges such as supply-chain localization, sustainability standards, advanced-packaging needs, and workforce development. Attendees will gain access to live demonstrations of wide-bandgap power modules, system-in-package AI boards, advanced sensing technologies, and ruggedized aerospace components, offering practical insight into how these innovations can be integrated into upcoming infrastructure, mobility, and industrial projects.
Core Technology Tracks
SiC & GaN Power Devices: Boosting efficiency in EV platforms, renewable-energy converters, and grid-modernization systems
AI & Edge Compute: Enhancing inference performance, connectivity, and next-generation packaging architectures
Automotive & Mobility Electronics: Powertrain chips, vehicle sensors, and software-defined-vehicle connectivity
Defense & Aerospace Semiconductors: High-reliability components for avionics, radar, and ruggedized electronics
Smart Energy & Grid Digitalization: Power-conversion ICs, digital-control systems, and industrial-automation modules
Participating Manufacturers & Technology Partners
Amphenol · ams OSRAM · BPM Microsystems · Diotec · Energizer · Epson · Holtek · Keysight - Marvell - Nuvoton · Qorvo · Quectel · Renesas · Samtec · SimCOM · STMicroelectronics · Swissbit · Viking · Wago · Würth Elektronik ·
The Semicon Summit 2025 represents a turning point for the region’s semiconductor landscape. As countries across the Middle East and Africa accelerate their electronics manufacturing and digital infrastructure plans, the summit offers a rare opportunity to align technology roadmaps, strengthen supplier relationships, and initiate cross-border collaborations. It also underscores McKinsey Electronics’ leadership in enabling regional access to global semiconductor innovation and supporting organizations as they design, source, and scale next-generation technologies.
Event Details
Location: Sofitel The Obelisk, Dubai
Dates: 9 & 10 December 2025
Registration: https://www.dubaisemicon.com/events/semicon-summit-3/form
New Advanced Defense-electronics Facility was Inaugurated
South Africa has inaugurated a new advanced manufacturing facility dedicated to defense electronics, signaling a significant step forward in the country’s ambition to become a key supplier of military-grade systems on the African continent and beyond. The facility is designed to support production of radar systems, communications equipment, avionics, and other high-reliability defense electronics, a move that aims to reduce reliance on imports and strengthen local supply-chain capabilities.
The opening comes as part of a broader push by South African defense industry players to expand internationally. In mid-2025 several major South African firms showcased their capabilities at the 2025 International Defense Industry Fair (IDEF) 2025 in Türkiye, under a national pavilion supported by the government’s export-promotion agency. That engagement reportedly brought strong interest from foreign partners, generating multiple trade leads and laying the groundwork for new export contracts.
At IDEF 2025, South African companies presented a range of electronics-intensive products: secure communications systems, control modules, cable harnesses for aviation and land platforms, tactical electronics, and UAV/drone-related components. These demonstrations reflect the growing breadth of capability within the local defense-electronics ecosystem.
The newly inaugurated facility is expected to consolidate these growing competencies by offering structured capacity for volume manufacturing and export-grade production. According to sources within the industry, this includes investment in quality-control infrastructure, compliance with international defense manufacturing standards, and the ability to manage complex supply chains, all critical to attract global clients and meet export requirements.
Analysts view this as part of a rising trend: globally, demand for defense electronics, from radar and avionics to secure communications and electronic warfare systems, is projected to grow robustly over the next decade, with increasing emphasis on local or regional supply-chain resilience. For South Africa, the new facility could position the country as a hub for defense electronics manufacturing on the continent, offering potential export opportunities to other African nations and beyond.
For companies in semiconductors, electronic components, and defense-electronics supply chains, this development could open new avenues: demand for components, sub-assemblies, testing, packaging services, and long-term supply contracts. As local manufacturing scales up, opportunities arise to support these factories with sourcing, supply-chain advisory, compliance audits, and quality assurance services.