Saudi Arabia Diverses from China to Foster Trusted Partnerships with the US in Semiconductor and AI Industry.

Saudi Arabia is set to divest from China if requested by the US, according to the chief executive officer of Alat, the country’s new investment fund for semiconductor and artificial intelligence technology. Amit Midha said that while current requests have been to keep manufacturing and supply chains separate, they would divest if partnerships with China became an issue for the US. Alat is backed by $100 billion in capital from the Public Investment Fund.

According to reports by Bloomberg, US officials have advised Saudi Arabian counterparts to choose between Chinese and American technology as they work to develop the Saudi Arabian semiconductor industry. The talks on national security issues have emphasized the importance of trusted and secure partnerships in the US. Midha expressed that the US is the number one partner and market for the AI, chips, and semiconductor industry.

Saudi Arabia is aiming to establish itself as a leader in advanced technology within the region. The country hopes to create data centers, AI companies, and semiconductor manufacturing facilities. Concerns have arisen in the US about the Middle East’s connections to China, with worries that countries like Saudi Arabia and the United Arab Emirates could provide Beijing with access to technology that Chinese firms are restricted from acquiring in the US.

To address these concerns, the US has asked AI firm G42, based in Abu Dhabi, to divest from Chinese technology in order to maintain access to US systems powering AI applications. This agreement led to a significant $1.5 billion investment by Microsoft Corp. in G42. Alat is planning to announce partnerships with two US tech companies by the end of June and will co-invest alongside a US investment firm. However, Midha did not disclose the names of