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U.S. partners with Kenya to boost African semiconductor manufacturing

Semiconductors and Electronics

Business Honor
21 June, 2024

Kenya’s partnership with the U.S. aims to integrate Africa into the global semiconductor supply chain.

Africa is on the verge of becoming a significant player in the global semiconductor manufacturing industry as Kenya enters into a groundbreaking partnership with the U.S. The U.S. Trade and Development Agency collaborated with Kenya during May 2024 to come up with East Africa's first semiconductor manufacturing capabilities-a moment of turning point for the continent. In the past, Africa was more of a supplier of raw materials, but with this development, it has an opportunity to contribute significantly to the high-tech supply chain and redefine its position within the global economy.

Anthony Githinji, founder and CEO of Semiconductor Technologies Limited (STL), which is at the heart of this project, was optimistic that USTDA's support would unlock significant investment opportunities for both Kenya and the wider African semiconductor ecosystem. This partnership will encourage extensive collaboration between the U.S., Kenya, and other African nations, further integrating the continent into the global supply chain.

The WEF highlighted this partnership to be the "first step towards a comprehensive, multi-layer strategy for resilient diversification of their supply chains," as Africa counts among its developing nations the great abundance of Kenyan, Nigeria, Rwandese, and Ghana's availability of critical minerals needed in production.

It is also a response to weaknesses in global supply chains, which the COVID-19 pandemic exposed through delays and shortages in semiconductor production. The creation of a manufacturing hub in Kenya will help the U.S. and Kenya avoid such risks in the future and ensure the stable supply of semiconductors, which are essential to myriad industries like automotive, electronics, and telecommunications.

It is an initiative involving robust investments in infrastructure, technology transfer, and workforce training to set up a strong semiconductor ecosystem within the long term in Kenya. Challenges persist at the back of infrastructure development and regulatory frameworks.