The head of Saudi Arabia’s new investment fund for semiconductor and artificial intelligence technology, Amit Midha, has stated that the country would divest from China if requested to do so by the US. This move comes amidst growing tensions between the US and China, as well as increased scrutiny from the US regarding Saudi Arabia’s connections with China.
According to Bloomberg reports, US officials have informed their Saudi Arabian counterparts that they must choose between Chinese and American technology as they work towards developing the Saudi Arabian semiconductor industry. Ongoing discussions surrounding various national security issues have outlined this decision-making process.
Midha emphasized seeking trusted, secure partnerships in the US, stating that the US is the top partner and market for AI, chips, and the semiconductor industry. He also mentioned that Alat would announce collaborations with two US tech companies by the end of June. The investment firm will co-invest alongside a US investment company, although no details regarding the specific firms involved or the focus on AI, chips, or a combination of both have been disclosed.
Saudi Arabia aims to establish regional leadership in advanced technology by building data centers, AI companies, and semiconductor manufacturing facilities. This goal comes amidst heightened scrutiny from the US regarding the Middle East’s connections with China. Concerns have arisen that countries like Saudi Arabia and the United Arab Emirates could potentially provide China with access to technology that their firms are restricted from purchasing from the US.
