Saudi oil company Aramco has signed a memorandum of understanding with GCT Semiconductor Holding to develop 5G chipsets.

The strategic partnership seeks to design and co-develop chipsets and modules tailored for LTE, 5G, and NTN spectrum to support the localization of wireless end-user devices and IoT manufacturing in Saudi Arabia.

Saudi Arabia
New 5G chipsets are being developed in Saudi Arabia – Getty Images

The partnership also promises to push AI-driven features, said GCT in a statement.

California-based GCT specializes in designing and supplying advanced 5G and 4G LTE semiconductor solutions.

"We look forward to working with Aramco and leveraging our advanced 4G and 5G capabilities with future-focused AI-driven modem features to help develop the local ecosystem and provide reliable and fast communication for their key applications in Saudi Arabia and the broader region,” said John Schlaefer, GCT CEO.

In January, Aramco Digital, the oil company's digital and technology subsidiary, announced plans to work with Intel to build Saudi Arabia's inaugural Open RAN (Radio Access Network) development center.

It's part of the country's plans to build more agile telecom networks, and is also part of Saudi Arabia's Vision 2030, which focuses on technological advancements and economic diversification.

According to Aramco Digital and Intel, the collaboration for an Open RAN center will deliver an innovation hub, develop the local workforce, and impact the country economically.

Workers at the development center will also be trained on Open RAN and Edge computing technology.