What inspired you to create this company, and what is your strategy for expanding into the GCC region?
Farhat Jahangir: I’ve been in the semiconductor manufacturing and business development industry for over 27 years. My journey began in Silicon Valley in 1996, a time when offshore manufacturing was becoming the norm. After helping various startups, including one that went to IPO and sold for over a billion dollars, I decided it was time to start my own company.
Starting GSME wasn’t just about creating another startup; it was about addressing the growing demand for manufacturing services and later developing our own products. With Silicon Valley becoming increasingly expensive and traditional hubs like Taiwan, Korea, China, and India getting saturated and costly, we looked for new horizons. Geopolitical shifts, such as the U.S.-China chip war, also pushed us to explore new regions. This led us to the GCC region, and specifically Oman, where we found a welcoming environment and strategic advantages.
Oman presented a unique combination of factors. It is a neutral country with strong diplomatic ties across the Middle East, fostering peaceful relationships and contributing to regional stability. Oman also has favorable expat policies and is geographically positioned as a gateway to the Arabian Peninsula. Living costs are significantly lower than the neighboring countries, and it boasts a young, well-educated population with good ethics. All these elements made Oman an attractive location for establishing a new hub.
What are the main services that GSME offers, and what makes your products unique?
Farhat Jahangir: GSME operates two major business units: design and manufacturing services, and product development. For the design and manufacturing services, we act as an aggregator, combining the needs of multiple clients to negotiate better deals with manufacturers, thus increasing the margins for our clients. Our expertise in fabrication, assembly, testing, and quality control ensures high standards and efficiency.
In product development, we focus on power management chips, essential for the growing demand for renewable energy and battery-operated devices. Our smart power management solutions enhance battery life and reduce power consumption, which is crucial for devices like smartwatches and power grids.
Can you elaborate on how you maintain high product quality while keeping costs affordable?
Farhat Jahangir: We adhere to industry standards like JEDEC and specific standards for automotive, military, and aerospace applications. We measure our quality using metrics such as defective parts per million (DPPM) and defective parts per billion (DPPB). Our design methodologies and rigorous auditing of third-party manufacturers ensure that our products meet or exceed these standards. This comprehensive approach allows us to maintain high quality while leveraging economies of scale to keep costs down.
GSME runs an incubator program in Oman. Can you tell us about it and how it contributes to the in-country value (ICV) of Oman?
Farhat Jahangir: When we established GSME in Oman, we committed to local participation and workforce development. We trained and employed around 100 Omanis in chip design and verification. Our incubator program supports employees with innovative ideas, helping them develop prototypes and, if viable, spin out as independent companies. We also work with local universities through a build-operate-transfer (BOT) model to create sustainable training and manufacturing hubs, ensuring a lasting impact on the local ecosystem.
Based on your experience, how does Omanization impact new businesses in Oman, particularly in your sector?
Farhat Jahangir: Omanization has a profound impact on new business in Oman, particularly in the semiconductor sector. Building a sustainable ecosystem in any country requires active participation from the local workforce. Oman’s initiative, Omanization, is beneficial as 60% of the population is under 29 years old, creating a vibrant pool of talent eager to contribute and innovate. This demographic enthusiasm and drive are crucial in fostering rapid growth and supporting business.
Moreover, Omanization and digitalization are key government initiatives. The support from the Ministry of Transport, Communications and Information Technology, and the Ministry of Labor has been instrumental in our success. Their train-to-hire program integrated Omani talent into the workforce. Local investors like the Oman Investment Authority (OIA) and ITHCA have also played a crucial role. These entities ensure that new businesses not only thrive but also contribute to the local economy by training and employing Omanis, which aligns with our technology transfer goals.
Omanization in the semiconductor sector has created a favorable environment for growth and innovation. By tapping into the talent and potential of young Omanis, supported by strategic government initiatives and local investors, we have been able to build an ecosystem that fosters technological advancement.
What are the main challenges and opportunities you see in the different markets you operate in?
Farhat Jahangir: The semiconductor industry is inherently global. Each region, from Silicon Valley to Taiwan, China, and now the Middle East, offers unique advantages. In Oman, we initially faced challenges related to work culture and expectations, but we’ve successfully instilled a global mindset and work ethic in our team. This adaptation is typical when entering a new market, but it has been rewarding as we integrate diverse perspectives and approaches. The Middle East offers untapped potential with a young, talented workforce and substantial investment opportunities, especially as the region looks to diversify from oil and gas to technology-driven industries.
Finally, what advice would you give to international or American companies looking to establish themselves in Oman?
Farhat Jahangir: Oman offers numerous incentives for businesses, including supportive government policies, investment opportunities, and a strategic location. The country’s young talent pool, coupled with significant investments in technology and infrastructure, makes it an attractive destination. Companies should leverage the local workforce and take advantage of Oman’s FTA with the USA. The government and local investors are keen to support businesses that are willing to transfer technology and contribute to the local ecosystem. Oman is a land of opportunities, and with the right approach, businesses can thrive here.
