Bloomberg: UAE’s AI Ambitions Include Making Advanced Semiconductors
- Minister says plans are long term and depend on US partnership
- OpenAI’s Altman reportedly seeking UAE funding for chips bid
The United Arab Emirates is seeking support from the US to become a producer of advanced semiconductors, a crucial component of the supply chain for artificial intelligence, as part of its plans to be a leading hub for the technology.
“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,” Omar Al Olama, the UAE’s minister of state for artificial intelligence, said in an interview, cautioning that the work is at an early stage.
The Gulf country has positioned itself to become a regional heavyweight in artificial intelligence, investing heavily in the sector and shifting away from China to assuage US government concerns.
The global surge in AI has fueled demand for advanced semiconductors which are needed to support the huge amounts of data processed by the smart technology.
The UAE’s plans have caught the attention of OpenAI’s Sam Altman, who’s approached Abu Dhabi to discuss funding for an advanced semiconductor venture, according to The Financial Times. The UAE’s sovereign wealth fund has also backed chipmaker GlobalFoundries Inc.
Still, manufacturing advanced chips in the Gulf will probably face significant hurdles. It would likely require a nod from the US government to allow collaboration with US companies given the region’s links to Beijing, and the UAE would also need to attract talent and expertise from overseas.
Al Olama said the UAE is only interested in building the new generation of chips rather than competing with cheaper models.
“The UAE cannot compete with a larger country with a lot more labor that’s able to provide these at par or sub-par chips for a cheaper price,” he said.