San Diego-based artificial intelligence chip company Kneron has secured a $2 million non-equity grant from Saudi Arabia’s National Technology Development Program (NTDP), marking the startup’s formal entry into the Middle East market.
The funding comes through the NTDP’s RELOCATE program, which aims to attract at least 50 semiconductor design companies to the Kingdom by 2030. Kneron will use the grant to establish a technology hub in Riyadh focused on advanced AI chip research and development.
Kneron specializes in edge AI processing chips that enable artificial intelligence capabilities directly on devices rather than requiring cloud connectivity. The company’s neural processing units are designed for applications in smart cities, enterprise systems, and IoT devices where low latency and energy efficiency are critical.
The grant announcement follows Kneron’s January decision to open a subsidiary in Riyadh through a partnership with Saudi Arabia’s National Semiconductor Hub (NSH). The NSH launched in 2024 with over $266 million in initial funding to build a local semiconductor ecosystem.
“We are excited to harness our AI expertise alongside Saudi Arabia’s rich resources and talent pool to deepen our collaboration with local businesses, research institutions, and universities,” said Albert Liu, Kneron’s founder and CEO.
Founded in 2015, Kneron has raised $195 million from investors including Sequoia Capital, Qualcomm, Foxconn, and Horizon Ventures. The company was valued at $1 billion during its last funding discussions in 2024.
The RELOCATE program is part of Saudi Arabia’s broader Vision 2030 initiative to diversify the economy beyond oil. The program provides financial incentives to international tech companies willing to establish operations in the Kingdom, with grants typically around $2 million per company.
Dr. Naveed Sherwani, CEO of the National Semiconductor Hub, said the partnership will help Kneron leverage the region’s talent and resources while introducing proven AI applications to the Saudi market.
Other companies participating in the RELOCATE program include supply chain security firm Qara, loyalty platform Merit, and Japanese drone company Terra Drone. The initiative is backed by Saudi Arabia’s Ministry of Communications and Information Technology, which plans to develop 20,000 AI professionals by 2030.
Saudi Arabia has committed $100 billion to create a technology hub called “Transcendence” as part of its push to become a regional tech center. The Kingdom is competing with other Middle Eastern nations like the UAE to attract international technology companies and talent.
For Kneron, the Saudi expansion represents an opportunity to tap into growing demand for edge AI solutions in the Middle East while supporting the Kingdom’s digital transformation goals across sectors including education, healthcare, and transportation.
The company plans to use its new Riyadh operations to serve Middle Eastern customers more effectively and contribute to local talent development through technology transfer programs.
