Saudi Arabia’s sovereign wealth fund has dismissed Alat CEO Amit Midha — a former Dell executive hired three years ago to run the $100 billion fund intended to make the kingdom an electronics manufacturing powerhouse. Alat also dropped plans to invest in semiconductor production, according to people familiar with the matter.

Midha was removed earlier this year, the people said, amid a wider review of the kingdom’s spending plans that led it to cancel some of its most ambitious projects. A team focused on semiconductors has been reassigned, and some people have been laid off as part of the spending review. The company is committed to its other electronics manufacturing projects, and is shifting resources intended for computer chips to support a newer plan developed by the kingdom to become a global data center hub, they said.

Dr. Muhammad Nasser Aldawood, head of industrials and mining at the nearly $1 trillion Public Investment Fund (PIF), has been named acting CEO of Alat.

A spokesperson for Alat confirmed Aldawood had been appointed acting CEO “in accordance with the company’s governance framework and is consistent with its long-term strategic plans.” The company’s “operations, partnerships, and strategic direction remain firmly in place,” according to the spokesperson.

Midha didn’t respond to requests for comment.

The changes at Alat predate the war, during which Iranian attacks have damaged facilities around the Gulf, including petrochemical plants, metals facilities, and data centers. That has led to questions about whether the region can safely host advanced manufacturing facilities.