From Oil to Circuits: UAE’s Latest Get-Rich-Quick Scheme

UAE ‎is‏ ‎actively ‎pursuing ‎partnerships, ‎especially ‎with‏ ‎the ‎US,‏ ‎and‏ ‎securing ‎investments ‎to‏ ‎establish ‎domestic‏ ‎manufacturing ‎of ‎cutting-edge ‎semiconductors,‏ ‎which‏ ‎are ‎vital‏ ‎for ‎its‏ ‎aspirations ‎to ‎be ‎a ‎global‏ ‎AI‏ ‎powerhouse ‎and‏ ‎technology ‎hub.

UAE’s‏ ‎Semiconductor ‎Manufacturing ‎Plans

📌The ‎UAE ‎is‏ ‎aggressively‏ ‎seeking‏ ‎partnerships ‎with‏ ‎the ‎United‏ ‎States ‎to‏ ‎build‏ ‎cutting-edge ‎semiconductor‏ ‎chips ‎crucial ‎for ‎artificial ‎intelligence‏ ‎(AI) ‎applications.

📌Omar‏ ‎Al‏ ‎Olama, ‎UAE’s ‎Minister‏ ‎of ‎State‏ ‎for ‎AI, ‎emphasized ‎that‏ ‎the‏ ‎«only ‎way‏ ‎this ‎will‏ ‎work ‎is ‎if ‎we’re ‎able‏ ‎to‏ ‎build ‎sustainable‏ ‎and ‎long-term‏ ‎partnerships ‎with ‎countries ‎like ‎the‏ ‎US‏ ‎where‏ ‎we ‎can‏ ‎build ‎cutting-edge‏ ‎chips.»

📌The ‎UAE‏ ‎aims‏ ‎to ‎develop‏ ‎next-generation ‎chips ‎rather ‎than ‎compete‏ ‎on ‎price‏ ‎with‏ ‎cheaper ‎alternatives ‎from‏ ‎larger ‎manufacturers.

📌Establishing‏ ‎semiconductor ‎manufacturing ‎in ‎the‏ ‎Gulf‏ ‎region ‎faces‏ ‎substantial ‎obstacles‏ ‎like ‎securing ‎US ‎government ‎approval‏ ‎due‏ ‎to ‎regional‏ ‎ties ‎with‏ ‎China, ‎attracting ‎global ‎talent ‎and‏ ‎expertise.

Funding‏ ‎for‏ ‎In-House ‎AI‏ ‎Chips

📌Abu ‎Dhabi’s‏ ‎state-backed ‎group‏ ‎MGX‏ ‎is ‎in‏ ‎discussions ‎to ‎support ‎OpenAI’s ‎plans‏ ‎to ‎develop‏ ‎its‏ ‎own ‎AI ‎semiconductor‏ ‎chips ‎in-house.

📌OpenAI‏ ‎is ‎seeking ‎trillions ‎of‏ ‎dollars‏ ‎in ‎investments‏ ‎globally ‎to‏ ‎manufacture ‎AI ‎chips ‎internally ‎and‏ ‎reduce‏ ‎reliance ‎on‏ ‎Nvidia.

📌MGX’s ‎potential‏ ‎investment ‎aligns ‎with ‎the ‎UAE’s‏ ‎strategy‏ ‎to‏ ‎position ‎Abu‏ ‎Dhabi ‎at‏ ‎the ‎center‏ ‎of‏ ‎an ‎«AI‏ ‎strategy ‎with ‎global ‎partners ‎around‏ ‎the ‎world.»

Strategic‏ ‎Importance

📌Advanced‏ ‎semiconductors ‎are ‎crucial‏ ‎components ‎in‏ ‎the ‎AI ‎supply ‎chain,‏ ‎essential‏ ‎for ‎processing‏ ‎vast ‎amounts‏ ‎of ‎data ‎required ‎for ‎AI‏ ‎applications.

📌Developing‏ ‎domestic ‎semiconductor‏ ‎manufacturing ‎capabilities‏ ‎is ‎a ‎key ‎part ‎of‏ ‎the‏ ‎UAE’s‏ ‎ambitions ‎to‏ ‎become ‎a‏ ‎leading ‎technology‏ ‎hub‏ ‎and ‎diversify‏ ‎its ‎economy ‎beyond ‎oil.

📌Partnerships ‎with‏ ‎the ‎US‏ ‎in‏ ‎semiconductor ‎manufacturing ‎would‏ ‎help ‎address‏ ‎concerns ‎over ‎the ‎UAE’s‏ ‎ties‏ ‎with ‎China‏ ‎in ‎sensitive‏ ‎technology ‎sectors.