Ivhu Africa and Semiconductors Technologies Limited Announce Landmark KES. 54bn Deal for Semiconductor Development

On Thursday 26 April 2024 Ivhu Africa (“Ivhu”), an Australian developer of green supply chain infrastructure, signed a Memorandum of Understanding with Semiconductors Technologies (STL) to build to suit facilities for the development of semiconductors and microchips in Africa, beginning with Kenya.

The deal will see USD 400 million (KES. 54billion) invested directly in the infrastructure and real estate required by STL across Sub Saharan Africa over the next 6 years. The first two facilities will be developed at the Dedan Kimathi University of Technology (DeKUT)Park in Nyeri County, the first Science & Technology Park in Kenya at a cost of USD 110million (KES 14.85 billion).

Speaking at the announcement during the recently concluded AmCham Business Summit, Maruza Chikwanha, Ivhu Africa Founder and Managing Director, highlighted the value of the development citing Africa’s green industrialisation goals, transformative supply chain diversification, job creation and the advancement of Kenya’s position as Africa’s Silicon Savannah.

“We are excited to be involved in the development of components critical to driving exponential technology in Africa, considering that 30 percent to 40 percent of the raw materials used in semiconductors are sourced from Africa. Starting with the first facility in Nyeri, we will be improving Kenya’s foreign direct investment inflows by putting in USD 10 million (KES. 1.35 billion) and impacting the community in a tangible way by creating more than 300 jobs within the construction phase, 80 percent of which will go to people who already live in the area,” said Chikwanha, adding, “We expect to complete construction on the first building in Q3 of 2025, and begin development of a second facility, still in Nyeri, which will cost (USD 100 million) KES 13.5 billion.”

In addition to Kenya, the partnership will see construction of nanofabrication plants and science centres in Nigeria, Uganda, Zambia and Botswana, with the aim of continuing STL’s mission to not only promote workforce development but also demystify science and empower Africans to take ownership of our own technology roadmap, investing in a brighter future for the Africa we want!

Dr Anthony Githinji, Founder and Managing Director of Semiconductors Technologies Limited, underscored the importance of building Africa’s capacity to contribute to the global technological race by improving physical infrastructure and human capital.

“STL and Ivhu Africa aim to create a resilient and transformative supply chain for advanced technology on the continent. Semiconductors and the facilities that are used for their development are incredibly complicated and often expensive requiring a special developer to put the facilities together. By the time we get to full operation of the first location built by Ivhu, we will increase our staff from 100 to 1,000,” said Dr Githinji.

The collaboration with Ivhu is a crucial part of STL’s expansion plans as it adds a layer of home-grown industrial real estate expertise to their context-sensitive technological advancements. Ivhu’s expertise in building green-certified infrastructure aligns seamlessly with STL’s goals of achieving net-zero direct & indirect emissions (scopes 1 & 2) across their infrastructure value chain by 2040.

The partnership’s shared focus on reducing impact, costs, and emissions while delivering eco-friendly, value engineered solutions demonstrates their dedication to creating a fit-for-purpose, green, resilient supply chain ecosystem.

To be relevant in the Fourth Industrial Revolution, Africa must prioritize green industrialization and value addition. Establishing robust science & tech ecosystems, exemplified by DeST-Park in Nyeri, and fostering early adoption of STEM and technology is crucial for driving this industrialization and economic development.