19 January 2023
ICT Minister Opens GSA 2023 Egypt Summit

The Minister of Communications and Information Technology Amr Talaat opened, today, the Global Semiconductor Alliance (GSA) 2023 Egypt Summit, in Cairo. The Summit is the inaugural event of GSA Egypt, established in collaboration with the Information Technology Industry Development Agency (ITIDA) and the Egyptian Information Telecommunications Electronics and Software Alliance (EiTESAL).

Officials and representatives of more than 60 local and global companies specializing in the semiconductor design and embedded systems industry, as well as several experts and academics attended the Summit.

The event includes seminars and panel discussions aimed at highlighting the current state of the semiconductor global industry, as well as the advantages and competitiveness of the Egyptian market. Topics in advanced technologies, venture capital, the future of semiconductors and embedded systems in the automotive industry, in addition to the challenges facing the industry, most notably talent shortage, were discussed during the Summit.

In his speech, the ICT Minister emphasized that the domestic electronics industry is growing, with Egypt developing and prioritizing it. He pointed out that the electronics industry development strategy is implemented to enhance Egypt’s position on the global map of that significant industry. The strategy stands on five pillars: capacity building, partnerships, strengthening of foundations, policy development, and electronics manufacturing hubs.  

Talaat added that capacity building is the cornerstone of the electronics industry development. He explained that Egypt has a rich talent pool, where 250,000 graduates in science, technology, engineering, and mathematics, 50,000 of whom graduate from the Faculty of Engineering.

Talaat emphasized the efforts made by the Ministry of Communications and Information Technology (MCIT) to invest in building youth’s digital capabilities, resulting in training about 600,000 young people over the past three years through a variety of programs and initiatives. These include short-term training programs, freelancing training, undergraduate ICT specialized education, and master’s scholarships in technical disciplines. The training programs cover various ICT disciplines, with focusing on electronics design, Talaat said, adding that MCIT works to increase the number of specialists in this industry and enhance their competitiveness.

The ICT Minister underlined that Egypt is developing policies to attract local and foreign investment to the electronics industry, including by establishing economic and industrial tech zones and specialized labs to stimulate the growth of electronics manufacturers.

The ICT Minister revealed that MCIT has also established the largest electronics industry hub in Egypt, at the Knowledge City in the New Administrative Capital. The hub houses 24 companies specialized in electronics design to serve as a center for research and development (R&D), testing and innovation, with its specialized labs.

The Ministry also developed the ICT infrastructure at $4 billion to boost Internet speed, the ICT Minister noted. As a result, Egypt now has the highest median fixed broadband speed in Africa. Furthermore, MCIT developed policies for strengthening the start-up ecosystem and fostering tech innovation and entrepreneurship.

Talaat pointed out that the electronics industry development strategy focuses on enhancing Egypt’s potential as an attractive destination for electronic design services export centers. He stated that over 55 local and international companies specializing in electronics design and embedded systems operate in Egypt. The country also has many competitive advantages that drive the growth of that promising industry and help serve different markets.

Talaat referred to the efforts made to establish partnerships with the private sector and attract major multinationals specializing in this field to cooperate in building digital capabilities and set up shop in Egypt to meet the heightened demand for such services.

The ICT Minister looked forward to enhancing collaboration with GSA, noting that launching GSA Egypt is a significant step in expanding the semiconductor promising industry.

GSA is a leading industry organization where leaders meet to establish an efficient, profitable and sustainable semiconductor ecosystem. This expanding ecosystem encompasses semiconductors, software, solutions, systems, and services. GSA has an impressive global footprint with 300 corporate members, including 120+ public companies. It provides a unique neutral platform for collaboration, where global executives interface and innovate with peers, partners and customers to accelerate industry growth and enhance the investment and intellectual capital return. GSA members represent 70% of the $500+ billion semiconductor industry.

ITIDA Acting CEO Ahmed Elzaher clarified that ITIDA attaches high priority to the electronics manufacturing and design industry as one of the global biggest industries and a major driver of economic growth.

Elzaher highlighted that ITIDA strives through Digital Egypt Strategy for Offshoring Industry 2022-2026, launched in February 2022, to increase the volume of IT exports, including offshoring services. the Authority also aims to place Egypt as an attractive destination for providers of electronics design and value-added services, quality testing services, and embedded systems, and enhance the country’s global competitiveness in that promising sector.

Elzaher added that local companies in Egypt have succeeded internationally in the value-added services field. Over 15 multinationals specializing in electronics design, embedded systems, integrated circuits, semiconductors, and e-chip software testing, are operating and exporting their services from Egypt.

Egypt, Elzaher added, has a rich talent pool of over 6,000 engineers specializing in this high-tech sector, reflecting the country’s competitiveness as an environment conducive to business growth, innovation, and development in electronics manufacturing and design.

For her part, GSA Co-founder and CEO Jodi Shelton explained that GSA includes members from major companies in different industry fields, including manufacturers of semiconductors, embedded systems, and software. She noted that such industry grew 40% from 2020 to 2022, pointing to the most prominent challenges facing the industry, most notably talent shortage.

Shelton added that Egypt enjoys many advantages, which encouraged GSA to establish, for the first time, an external division, in Egypt, including about 30 companies. She emphasized that Egypt has an abundance of talent and is a gateway to different markets and to Africa.

It is noteworthy that the regional division GSA Egypt has been established in collaboration with ITIDA and EiTESAL, as part of GSA expanding ecosystem that encompasses key players and leaders in semiconductors, software, solutions, systems, and services.

GSA Egypt provides benefits and privileges of GSA full membership to companies operating in Egypt, enabling them to communicate with experts in the semiconductor industry, explore the latest technologies, practices, and models, as well as the opportunities available in various markets through different specialized activities, events, and conferences.
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