The United Arab Emirates (UAE) wants to work with the United States to help themselves become a producer of advanced semiconductors, which are crucial parts of the artificial intelligence (AI) supply chain.
Omar Al Olama, the UAE’s minister of state for artificial intelligence, emphasized, “The only way this will work is if we’re able to build sustainable and long-term partnerships with countries like the United States where we are able to build cutting-edge chips.”
The UAE’s ambition to become a leading technology hub involves heavy investment in AI and a strategic shift away from China to address US government concerns. The surge in global demand for AI has intensified the need for advanced semiconductors, crucial for processing vast amounts of data.
It is anticipated that there will be substantial obstacles to overcome to create semiconductor manufacturing in the Gulf region, despite these efforts.
Given the region’s links to Beijing, collaboration with US corporations would probably require approval from the US government. Success would also depend on luring in international talent and experience.
Al Olama stressed that the UAE’s focus lies in developing next-generation chips rather than competing on price with cheaper alternatives. He acknowledged the limitations posed by the country’s smaller size and labor force compared to larger competitors but remains committed to advancing technological innovation in the region.
Also Read: UAE Central Bank Unveil Wholesale-Retail Digital Dirham Plan
