Unveiling Egypt's IC Design Potential: Investment Opportunities Abound

Egypt, a country that is known historically for its tremendous and prosperous heritage and its ancient wonders and innovations, is now gaining recognition for another kind of innovation - Integrated Circuit (IC) design. This emerging sector is rapidly becoming a hotspot for investors seeking fresh opportunities in a region poised for technological transformation. In this article, we delve into the vibrant landscape of Egypt's IC design industry, highlighting the potential it holds and the investment prospects it offers.

Egypt's journey into the world of IC design started more than two decades ago, shaping the last picture we will dive into in some key strengths.

?Key Strengths of Egypt's IC Design Sector:

1- Talents: I believe that the distribution of talents among humans anywhere follows a normal distribution, so there is no place where there are only intelligent people to the extreme or a place with only less intelligent people to the extreme. Instead, every place gathers a mixture of all types of minds. so, I can't claim that Egypt is the home of the most intelligent people on earth However, I also believe that the circumstances in which people live and the surrounding conditions can nurture certain skills in individuals. I think that sometimes the challenging and not-so-comfortable conditions have shaped some exceptional talents in Egypt, distinguished by their diligence and hard work. This is evident in the fact that it is difficult to find a top-tier university in the world without Egyptians, and also in major global companies, you will find a group of hardworking Egyptians performing well.

?And also a good thing to mention is by increasing the population of the above curve it'll maintain the same bell curve but the number for every percentage will increase meaning more people of higher IQ. So, if I told you that Egypt has 60K ICT grads you should conclude something.

2- Education: Education in Egypt is generally of high quality, particularly in the field of Electronics and Communication Engineering (ECE). Egyptian students specializing in IC design have access to the same curriculum and references as those used in top universities worldwide. With the emergence of Massive Open Online Courses (MOOCs) and Open Course Ware from prestigious universities, students now have the convenience of accessing educational materials from any university globally and studying from them with ease. This integration of global resources has greatly enriched the educational experience for Egyptian students pursuing IC design, allowing them to stay at the forefront of their field.

3- Training: This aspect is exceptionally significant in Egypt, with a multitude of training opportunities available to students specializing in IC design. Among the leaders in this field is the "Mastering Microelectronics" channel, affiliated with Master Micro company, which offers training in various specialized areas, including Analog IC Design, Digital IC Design, Analog Integrated Systems, and AMS Simulation and Modeling. Students are meticulously trained in all these areas, gaining proficiency in industry-standard tools even before graduating. and it was a great opportunity for me to work as a TA in this analog training; which is sponsored by the ITI; I can admit there is a lot of effort put into this training in both the filtering process; which guarantees that the trainees are from the most intelligent and hardworkers; and in the teaching process.

Following graduation, students can look forward to advanced training opportunities provided by esteemed institutions such as the Information Technology Institute (ITI) , the National Telecommunication Institute - ?????? ?????? ????????? (NTI), and The American University in Cairo (AUC). These institutions offer advanced training in Analog IC Design (AMS, RF, Layout), as well as Digital IC (Design and Verification), all facilitated by industry experts, whether instructors or teaching assistants. I had the fortunate opportunity to attend one of these training programs, witnessing firsthand the dedicated effort put into imparting cutting-edge knowledge and hands-on experience with the latest industry tools.

Furthermore, one must not overlook the academies established by major companies, such as the Si-Vision Academy and Siemens EDA Excellence Academy, which contribute significantly to the training landscape.

These examples merely scratch the surface, as there are both individual and institutional initiatives throughout Egypt dedicated to providing comprehensive training in this field.

?Combining 1, 2, and 3 we can say that Egypt has a skilled workforce of engineers and designers who have received world-class training and education making them well-equipped to tackle complex IC design projects.

But every group of people needs leaders to guide them, and they also need experts to provide them with the necessary expertise, and here comes number 4 "Experts"

4- Experts: Egypt boasts a wealth of expertise in the field of IC design, and these experts can be divided into two categories. The first comprises individuals who have emigrated abroad to study or work, with many of them eagerly awaiting favorable opportunities and considering the possibility of returning. The second group consists of experts who have already returned and established their own companies or gained valuable experience working with companies in Egypt. Talking about companies in Egypt, Egypt is home to several prominent companies in this domain since 1993 only one company now there are more than 50 companies in the electronics industry.

?One of the companies we are proud of in Egypt is Si-Ware Systems as it is one of the pioneering companies in Egypt and has paved the way for many other companies mentioned. You will find that the founders of most of these companies had previously worked at Si-Ware Systems. So, let's take a glimpse at this company before we continue:

In 2004, Si-Ware was founded by leading-edge scientists and entrepreneurs who developed the first alignment-free, calibration-free, and shock-resistant Fourier Transform-IR module on a chip. These innovative modules were integrated into OEM systems for material-analysis applications in environmental, healthcare, agriculture, food and beverage, industrial, pharmaceuticals, petrochemicals, and law enforcement industries. Just ten years later, Si-Ware won the 2014 Prism Award from the International Society for Optics and Photonics (SPIE) for their first-generation technology. Since then, Si-Ware has continued to innovate and garner approval for technology and solutions. In addition to scoring dozens of patents, Si-Ware has published scores of research papers that represent their technical advancements in FT NIR. Si-Ware, an independent fabless semiconductor company that fosters silicon innovation, is headquartered in Menlo Park, California, with research and development centers in Paris, France, and Cairo, Egypt. Si-Ware’s end-to-end NeoSpectra solution, which combines portable FT NIR Analyzers with intuitive software and a powerful cloud to quickly analyze samples with speed and precision across almost all industries, has evolved over two decades of innovation.

Also, we have Si-Vision (The largest IC design company in Egypt with more than 500 engineers, its Bluetooth IP was acquired by Synopsys Inc. in 2015, and collaborate with world-class technology partners including SMIC, HHGrace, Mindtree Ltd., Mentor Graphics, and XFab.), Pearl Semiconductor(a fabless IC company specializing in high-performance Reference Clocks and Timing ICs), Mixel, Inc.(a leading provider of mixed-signal IPs), PULSAR Microelectronics (providing high-value design services in a broad spectrum of key product lines such as sensors interfacing, wireless connectivity, power management, timing, and more.), InfiniLink (a startup developing ultra-high-speed SerDes and Optical Transceiver chiplets using the?latest Silicon and Si-Photonics technologies), Master Micro (a promising startup that provides EDA solutions and professional training and consulting services), ICpedia (which offers world-class services like Design specification, Architecture specification and design, Logic design, RTL coding, Logic verification, Synthesis, Timing analysis and closure, Place and Route, chip layout, Physical verification, and Test pattern generation.), MEMS Vision (leading sensors, MEMS, and semiconductor company that develops and produces miniature, very high-quality smart sensors and electronics that enable Internet of Things (IoT) applications for many fields), PyramiX IC Design (With extensive experience in developing and licensing state-of-the-art power management and analog intellectual properties (IPs), PyramiX empowers its customers to develop tailored solutions in different key areas like power management, data converters, SERDES and more.), Insspectrum(a company specializing in the design of RF/Analog and mixed-signal IPs, closely collaborating with Seamless Waves , Paris, France.) and we have also branches of top companies around the world like Siemens EDA (Siemens Digital Industries Software) (Egypt has a large branch with more than 600 engineers) and other well-known companies like Analog Devices, STMicroelectronics, 艾睿电子 , Goodix Egypt, and Telink Semiconductor(dedicated to the development of highly integrated low-power radio-frequency and mixed signal system chips for Internet of Things applications).

?We can delve deeper into talking about companies later so as not to diminish the significance of any one of them, as there are many success stories worth telling.

?And talking about Egyptian companies it's good to know that 56 companies from Egypt are involved in the Global Semiconductor Alliance (GSA).

?It's good news there are skilled workforce and expert leaders but you may be afraid of investing because you do not know the current direction of the Egyptian government, and here comes number 5 "Government"

5- Government: Actually, this is a great time, to invest as the Egyptian government is currently opening its arms to the semiconductor industry. I recall the training programs you mentioned earlier, all of which are supported by the Egyptian Ministry of Communications and Information Technology under the initiative called "Egypt Makes Electronics (EME)".

Actually, while publishing this article, I heard the news of the Minister of CIT himself heading to the United States to meet with officials from companies like VXI, MediaTek, and Synopsys and to sign an MoU with VMware So, at this time, you will find many incentives and facilitations for investing in the semiconductor industry in Egypt.

?This current support from the government isn't strange as Egypt’s information and communication technology (ICT) sector is the fastest growing sector in the country’s economy, reaching 16.7 percent growth in the fiscal year 2021/2022 with exports reaching $4.9 billion and with a contribution to the GDP reached 5%. This made the government sign 29 MoUs with MNCs expanding and new to the market in 2022.

?So far, I think things are more than wonderful, and if you're asking about operating expenses in Egypt.

6- Operating Expenses: Operating costs in Egypt are relatively lower compared to more established tech hubs on almost all sides like labor costs, Office Space and Infrastructure, and also as said before there is governmental support so who knows incentives may be included like tax breaks, grants, and subsidies.

?According to Startup Genome Egypt is considered among the top 20 countries of affordable Talent in the global Ecosystem.

?According to Numbeo Egypt is considered the 2nd most cheapest country to live in and in most sites and rankings it's in the top 10.

? also a bonus point that may be helpful for some investors:

7- Strategic Location: Egypt's geographic location at the crossroads of Europe, Asia, and Africa makes it an exceptional choice for businesses seeking to tap into diverse markets. Its strategic position provides convenient access to these regions, facilitating the distribution of IC products and services across a wide spectrum of markets

So, after all this discussion, I find that investing in Egypt is a great opportunity at this time. Come and invest in Egypt!