Madbouly calls for national council to localize electronic chip manufacturing industry

Egypt is looking into growing its capabilities in manufacturing electronic chips, with Prime Minister Mostafa Madbouly calling a high-level meeting to discuss the establishment of the National Council for the Localization of Technology for Manufacturing Electronic Chips, as well as efforts to localize the industry.

Madbouly stressed on the importance of developing Egypt’s local manufacturing of electronic chips, emphasizing the need to stimulate investments and establish a conducive business environment to expand the industry.

Electronic chips, a vital component in electronic devices and automotive manufacturing, have been in limited stock after supply chains were disrupted by the COVID-19 pandemic.

The PM called for the creation of a strategy with steps on implementation on how to localize the industry before the council’s formation, stressing the importance of coordination between the concerned authorities to develop the plan.

The meeting was attended by Minister of Finance, Mohamed Maait; Ahmed Al-Zaher, Chairman of the Information Technology Industry Development Authority (ITIDA); Nahed Youssef, Chairman of the Industrial Development Authority; and Hossam Othman, Advisor to the Minister of Communications for Electronics Manufacturing.

Finance Minister Maait reviewed the existing exemptions that can be granted to investors within the industry that would support efforts to localize the electronic chip industry, as well as other possible benefits that could be provided to companies subject to the investment law, the laws regulating small and medium enterprises, or the free zone system.