October 2025 Updates for Design Engineers
Read the latest semiconductor and electronics news and updates.
In this edition:
Global Chipmakers Unite at Semicon Summit 2025 - Dubai
This December, Dubai will host The Semicon Summit 2025, a landmark event bringing together the world’s leading semiconductor manufacturers, technology integrators, and regional decision-makers across the Middle East, Africa, and Türkiye.
Held at Sofitel The Obelisk Dubai, hosted by McKinsey Electronics, the summit will serve as the premier regional forum for semiconductor innovation, bridging global expertise with the fast-growing technology ambitions of the GCC and neighboring markets.
Driving Regional Semiconductor Growth
Over two days, industry leaders will explore the latest advancements in AI hardware, power electronics, automotive semiconductors, and IoT/edge systems, while addressing regional challenges such as supply-chain localization, sustainability, and design ecosystem development.
Participants can expect technical presentations, policy discussions, and live technology showcases highlighting next-generation semiconductor devices and applications shaping industrial, automotive, and energy sectors.
Key Focus Areas
Wide-bandgap Semiconductors (SiC / GaN): Improving efficiency in EVs and renewable-energy systems
AI & Edge Processing: Accelerating inference, connectivity, and system-in-package innovation
Automotive & Mobility: Powertrain electronics, sensors, and vehicle connectivity
Defense & Aerospace: Ruggedized components and high-reliability systems
Smart Grid & Energy Management: Power conversion and grid-level digitalization
Confirmed Manufacturers & Partners
Amphenol – ams Osram – BPM Microsystems – Degson - Diotec - Energizer – Epson – Holtek – Nuvoton – Qorvo – Quectel – Renesas – Samtec – SimCOM – STMicroelectronics – Swissbit – Viking – Wago – Würth Elektronik, and Keysight.
Why It Matters
The Semicon Summit 2025 represents a milestone for the region’s semiconductor ecosystem, not only showcasing cutting-edge technologies but also fostering direct engagement between global suppliers and local design & procurement teams.
As nations in the Middle East and Africa invest in electronics manufacturing and digital infrastructure, the summit provides a rare opportunity to align roadmaps, exchange knowledge, and forge new industry partnerships.
Event Details
Venue: Sofitel The Obelisk Dubai
Dates: 9 - 10 December 2025
TSMC Smashes Earnings on AI Boom
Taiwan Semiconductor Manufacturing Company (TSMC) delivered one of its strongest quarters to date, reporting a 39 percent year-on-year profit surge for Q3 2025, driven almost entirely by unprecedented demand for artificial-intelligence and high-performance-computing chips. Net income reached roughly NT$452 billion (US$14.8 billion), while total revenue climbed to US$33.1 billion, setting an all-time quarterly record for the world’s largest contract chipmaker. Reuters and Tom’s Hardware both note that these results exceeded market expectations and ignited rallies across Asian semiconductor stocks.
The company attributed the sharp growth to booming orders from customers such as Nvidia, Apple, and AMD, whose AI accelerators and processors depend on TSMC’s most advanced manufacturing technologies. Chips built on 3-nanometre and 5-nanometre nodes accounted for nearly three-quarters of wafer revenue, reflecting how quickly the market has shifted toward cutting-edge geometries. Chief executive C.C. Wei said AI-related demand was “even stronger than expected three months ago,” underscoring how generative-AI computing workloads are reshaping global semiconductor consumption.
TSMC raised its full-year revenue forecast to the mid-30 percent range, up from earlier guidance of about 30 percent, and maintained an annual capital-expenditure plan of roughly US$40 – 42 billion. The spending will support expanded production capacity for advanced nodes and packaging technologies, as well as overseas manufacturing programs in the United States, Japan, and Germany. Analysts quoted by the Financial Times said this scale of investment demonstrates TSMC’s confidence that AI-driven growth is not a short-term spike but a multi-year structural trend.
Beyond headline profits, the results reinforce TSMC’s pivotal role in the semiconductor supply chain. Advanced-node output, long a competitive bottleneck, now sits at the center of global technology strategy, with TSMC controlling most of the world’s leading-edge capacity. The company’s performance ripple effects extend to upstream equipment vendors, materials suppliers, and regional economies positioned around chip manufacturing hubs. Semiconductor index funds in Taiwan, South Korea, and Japan all rose sharply following the earnings release, reflecting renewed investor confidence in the sector’s momentum.
At the same time, TSMC cautioned that geopolitical risks remain significant. Expanding production outside Taiwan introduces higher costs and regulatory complexity, while ongoing U.S.–China trade restrictions could affect customer allocation and equipment sourcing. Nevertheless, management reaffirmed its commitment to diversifying global operations to ensure supply resilience and maintain technological leadership.
This surge reinforces McKinsey Electronics’ position in the semiconductor value chain. As AI demand drives new chip designs and advanced-node production, the need for high-performance components and reliable distribution grows. By connecting regional engineers and manufacturers with leading-edge semiconductors, McKinsey Electronics helps translate global innovation into real, deployable solutions across the Middle East, Africa, and Türkiye.
"Stargate UAE" AI Campus: First 200 MW Online in 2026
The Abu Dhabi-backed tech firm G42 has confirmed that the initial 200 megawatts of compute capacity for its planned 5 gigawatt “Stargate UAE” AI campus will go live in 2026. The campus is part of a much larger 5 GW AI-infrastructure initiative between the UAE and U.S., and the first phase—designated at 1 GW—will kick off with this 200 MW segment.
Construction of the first 200 MW is already underway, with civil, structural and MEP (mechanical, electrical, plumbing) works in progress and long-lead equipment for the modular data-center rigs already delivered. Global technology partners, including OpenAI, NVIDIA, Oracle, Cisco Systems, and SoftBank Group are engaged.
From a strategic viewpoint, the 5 GW campus reflects the UAE’s ambition to become a global AI hub and its efforts to attract leading-edge compute capacity. The first tranche gives a concrete timeline (2026) for deployment. But there are still open issues: the remaining 4.8 GW depends on finalized contracts, export-licensing of advanced chips and modules (particularly U.S. origin), and assurance of secure supply chains and partnerships given previous scrutiny of G42’s links to China.
For the electronics components and semiconductor supply-chain sector, this development matters in several ways:
Demand for advanced compute hardware: A 200 MW facility corresponds to very high density of servers, AI accelerators, memory modules, interconnects and cooling/power infrastructure. The parts-ecosystem (chips, PCBs, power-delivery modules) will be critical.
Regional localization: With a major compute hub in the region, local procurement, integration and service partners will become more important; firms servicing the Middle East-Africa corridor may see an opportunity.
Export-control & supply-risk visibility: Because US- and other origin parts (especially advanced AI chips) are involved, component and module suppliers must track licensing, compliance and lead-times carefully.
Scale & ecosystem effect: The step from 200 MW to 5 GW is large—implying multi-year investment, recurring orders, and a sustained requirement for infrastructure components (power, cooling, data center hardware) in addition to semiconductors.
In summary, the Stargate UAE project’s progress (200 MW by 2026) signals that large-scale AI infrastructure deployment is accelerating in the Middle East. For component distributors, semiconductor suppliers and system-integrators, this offers a clear forward signal of regional demand—but also emphasizes the need for supply-chain agility, export-control compliance and readiness to service large-scale infrastructure rather than merely one-off projects
For McKinsey Electronics, projects like Stargate UAE illustrate how regional investment in AI infrastructure is transforming the demand landscape for semiconductors and electronic components. As hyperscale data centers take shape, the focus shifts to high-performance chips, precision power systems, and reliable interconnect solutions — all areas where McKinsey Electronics brings deep supply-chain expertise and technical support. By linking global component manufacturers with the region’s emerging AI and cloud-computing players, the company helps ensure that this new generation of infrastructure is built on dependable, cutting-edge technology.
US-Saudi Chip Export Deal "Nearing"
The United States and Saudi Arabia are reportedly nearing a formal agreement that would allow American semiconductor companies to export advanced chips to the Kingdom under specific licensing and security guardrails. The deal, expected to be finalized within weeks according to Reuters and The Wall Street Journal, represents a significant step in strengthening U.S.–Saudi technological and economic cooperation.
For Washington, the accord reflects a broader strategy to expand semiconductor partnerships beyond East Asia while maintaining control over the transfer of sensitive technologies. The framework would grant Saudi Arabia access to state-of-the-art U.S. processors for use in artificial intelligence, cloud computing, and data-center infrastructure, but exports would still be tightly regulated through case-by-case licensing.
For Riyadh, this agreement fits squarely within Vision 2030, which prioritizes building a domestic high-technology ecosystem and reducing dependence on oil revenue. Advanced chips are critical to developing Saudi Arabia’s AI ambitions, particularly in powering large-scale data centers and AI model training environments. Access to these components will also help the Kingdom accelerate projects under entities such as the Ministry of Communications and Information Technology and the National Center for AI.
Industry analysts note that the deal would likely trigger a wave of demand for associated electronics and components. High-end chips depend on supporting systems such as power-management modules, interconnects, cooling infrastructure, and memory devices, creating parallel opportunities for component suppliers and distributors operating in the Middle East. However, compliance and export-control obligations will become more stringent, requiring companies to align with U.S. trade restrictions and end-use verification standards.
Overall, the emerging U.S.-Saudi semiconductor export framework signals a new stage in the Gulf region’s integration into the global chip supply chain. It highlights how semiconductor access has become both an industrial and geopolitical priority, reshaping where the next wave of high-performance computing capacity will be built.
As Saudi Arabia expands its semiconductor and AI infrastructure, distributors capable of ensuring compliant and efficient access to advanced components will play a crucial role. McKinsey Electronics is positioned to support this transformation by connecting regional technology developers with global semiconductor manufacturers, managing supply-chain logistics, and providing technical integration support for next-generation datacenter and AI deployments.
Türkiye's 5G Spectrum Action Raises ~$2.95B
Türkiye’s latest 5G spectrum auction concluded on October 16, 2025, raising approximately US$2.95 billion from its three major mobile operators - Turkcell, Türk Telekom and Vodafone Türkiye - for licenses covering the 700 MHz and 3.5 GHz bands. The auction exceeded the Turkish government’s minimum target of US$2.125 billion, with some sources reporting US$3.53 billion including VAT. Commercial 5G service rollout is set to begin on April 1, 2026, with coverage expanding from major cities to nationwide over the following year.
For the semiconductor and electronic components industry, this auction signals a meaningful uptick in near and mid-term demand. The deployment of 5G networks at scale demands significant quantities of RF front-end modules, base-station electronics, high-throughput transport infrastructure, power-management ICs and advanced network gear. With Türkiye’s operators now holding spectrum licenses, capital investment in network build-out is expected to accelerate, creating an order pipeline for component suppliers.
Moreover, the auction includes policy conditions aimed at boosting domestic production—the tender required operators to use a certain share of locally-produced infrastructure equipment. This creates opportunity not only for global component brands but also for distributors who can align their supply chain, logistics, and local service operations with the Turkish market’s evolving ecosystem.
Operators’ commitments to the spectrum licenses span until the end of 2042, and they accepted obligations such as paying 5% of annual revenues from older 2G/3G services as part of the regulatory framework. These long-tenure licenses support a stable multiyear investment horizon for network hardware, making Türkiye a more predictable market for suppliers and integrators of telecom electronics equipment.
Türkiye’s 5G spectrum auction moves the country into high gear for next-generation mobile connectivity. For component companies and distributors, the time to engage is now, preparing for equipment sourcing, qualification, logistics and regulatory compliance ahead of the April 2026 rollout.
Türkiye's Builds Base With 17 Domestic Chip-Design Firms
A recent sector snapshot shows that as of October 11, 2025, Türkiye hosts at least 17 active companies engaged in semiconductor design and manufacturing services (often termed “fabs and design houses”), a modest but meaningful step toward developing a local chip ecosystem.
These firms span areas such as ASIC/FPGA development, sensors/ROICs, embedded systems chips and contract manufacturing services. While most operate at the medium-node or legacy-node level, rather than bleeding-edge sub-3 nm processes, the fact that domestic engineering talent is mobilising to this space is noteworthy. Growth drivers include rising regional demand from automotive electronics, IoT/5G modules, defense systems and local content mandates, as detailed in a complementary market report on Türkiye’s semiconductor market, which estimates a 2025 value of around US$3.52 billion with a ~4.6% CAGR to 2030.
One of the key observations: Türkiye is still small scale in global semiconductor terms. The 17 firms are few compared to major design hubs, their volumes are limited and global supply-chain linkages (especially for advanced node tooling and packaging) remain immature. But their presence shows the beginning of a value-chain shift, from purely import reliant to partial local engineering & assembly. The market analysis points out that many of these firms are capturing design services, fabless logic/sensor work or specialized packaging/assembly, often supported by government incentives and technopark infrastructure.
For component and systems suppliers, this development signals an opportunity: as local chip design-houses mature, they will demand ancillary services, power management ICs, mixed-signal IP blocks, packaging modules, test equipment, sensors, PCBs, connectors and regional distribution support. Distributors positioned in Türkiye or the broader EMEA/Middle-East region can gain by aligning early with these smaller design houses, providing engineering support, inventory buffers and localization expertise. On the flip side, suppliers should recognize that Türkiye’s ecosystem remains emerging, so expectations of high-volume wafer manufacturing or leading-edge node output should be tempered.
From a distributor’s perspective, McKinsey Electronics is well placed to engage with Türkiye’s growing semiconductor-services ecosystem. By offering access to global component supply, technical design-in support and regional logistics, the company can serve these 17 design/manufacturing-services firms as they scale. Early engagement now affords McKinsey Electronics a strategic position in a market that may increasingly demand specialized modules, local content supply-chain flexibility and integrated component solutions in the years ahead.