President Donald Trump is working with the United Arab Emirates, so that Abu Dhabi can expand its reach in AI development. The U.S. and UAE are working on a path to allow Abu Dhabi to purchase some of the most advanced American-made semiconductors for its AI development, President Trump said from the Emirati capital Friday.
“Yesterday the two countries also agreed to create a path for the UAE to buy some of the world’s most advanced AI semiconductors from American companies, it’s a very big contract,” Trump said while attending the U.S.-UAE Business Council breakfast during the last day of his four-day visit to the Middle East.
These high-end U.S.-made semiconductors have been kept from the Middle East due to various national security concerns. However, Trump is riding high on the billions in investment that the gulf countries have recently pledged to the United States. Though there are those who believe that such unfettered access could end with the high-end U.S. technology in the hands of rivals like China, something both Trump and former President Joe Biden have worked against.
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If the Middle East gains unfettered access to high-end U.S. semiconductors, it could have several significant impacts. Economically, it might boost the region’s technological capabilities, fostering innovation and strengthening industries such as artificial intelligence, telecommunications, and advanced manufacturing. Countries could use these chips to develop their own tech ecosystems, reducing dependence on foreign suppliers and creating more opportunities for regional growth.
Geopolitically, it could shift power dynamics. Nations with access to cutting-edge technology may become more influential in global markets, potentially challenging the technological dominance of the U.S. and China. Additionally, the region’s military capabilities might improve, given the dual-use nature of semiconductors in both civilian and defense technologies.
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On the downside, such access might fuel regional arms races or tensions, especially if rival powers use advanced chips for strategic advantage. It could also lead to concerns about technology transfers to adversaries or non-state actors.