UAE Strengthens Position as Global Hub for Advanced Technology and AI
Abu Dhabi, The Gulf Observer: The United Arab Emirates (UAE) is reinforcing its status as a global leader in advanced technology and artificial intelligence (AI). This strategic ambition is underpinned by international partnerships in the critical field of advanced semiconductor manufacturing, a sector essential for a future rooted in innovation.
The UAE’s journey into semiconductors began with the Mubadala Investment Company, a key player in the nation’s economic diversification. In 2009, Mubadala established GlobalFoundries, which has since become a leader in the semiconductor industry and is now listed on the NASDAQ Stock Market in the United States. This strategic foresight has not only cemented Mubadala’s role as a transformative investor but has also positioned the UAE as a significant force in the global semiconductor arena.
In addition to direct investments, the UAE is fostering strategic alliances to meet the soaring global demand for advanced chips. These collaborations aim to balance supply and demand, especially in rapidly expanding markets. Semiconductors are vital to numerous technologies, from smartphones to advanced medical equipment. Their increasing significance necessitates a proactive approach.
Further enhancing the UAE’s technological ambitions is the creation of MGX, a technology investment company initiated by the Artificial Intelligence and Advanced Technology Council (AIATC). MGX, with foundational partners Mubadala and G42—a global leader in AI—focuses on AI infrastructure, semiconductors, and core AI technologies. This initiative underscores the UAE’s dedication to leveraging AI and advanced technology for global benefit, including well-being, sustainability, and improved communication.
The synergy between Mubadala and G42 is a powerful catalyst. Mubadala’s successful track record with transformative technologies like AMD and GlobalFoundries, combined with G42’s expertise in AI, cloud computing, and specialized applications, positions the UAE as a prime destination for investors, entrepreneurs, and top talent in the tech sector.
The Semiconductor Industry Association (SIA) recently announced that global semiconductor industry sales reached $46.4 billion in April 2024, marking a 15.8% increase compared to April 2023, and a 1.1% rise from March 2024. These figures, compiled by the World Semiconductor Trade Statistics (WSTS) organization, represent a three-month moving average. Additionally, the latest WSTS industry forecast predicts annual global sales growth of 16.0% in 2024 and 12.5% in 2025. SIA, representing 99% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms, anticipates strong growth driven by sales to the Americas market, expected to grow by more than 25% this year.
“The global semiconductor industry posted double-digit sales increases year-over-year during each month of 2024, and worldwide sales in April rose on a month-to-month basis for the first time this year, indicating positive market momentum as we approach the middle of the year,” said John Neuffer, SIA president and CEO. “The latest industry forecast projects robust annual growth in 2024, led by sales to the Americas market.”
By embracing strategic partnerships and fostering innovation, the UAE is charting a dynamic course towards becoming a pre-eminent global technology leader.
