UAE Elevates Its Tech Status With Strategic Focus On Semiconductors And AI

The United Arab Emirates (UAE) is reinforcing its status as a global centre for advanced technology and artificial intelligence (AI). This strategic vision relies heavily on international partnerships in the critical area of advanced semiconductor manufacturing, a sector recognised as essential for a future driven by innovation.

The UAE's commitment to semiconductors began early. Through Mubadala Investment Company, a key driver of the nation's economic diversification, the UAE established GlobalFoundries in 2009. Now a leader in the field, GlobalFoundries is listed on the NASDAQ Stock Market in the United States. This foresight not only solidified Mubadala's role as a transformative investor but also positioned the UAE as a significant player in the global semiconductor landscape.

Beyond direct investments, the UAE fosters strategic partnerships to address the global demand for advanced chips. These collaborations aim to achieve a vital balance between supply and demand, particularly in rapidly growing markets. Semiconductors are crucial for numerous technologies, from smartphones to sophisticated equipment in hospitals and schools. Their growing importance necessitates a proactive approach.

Further supporting the UAE's tech ambitions is the creation of MGX, a technology investment company led by the Artificial Intelligence and Advanced Technology Council (AIATC). MGX, with foundational partners Mubadala and G42, focuses on AI infrastructure, semiconductors, and core AI technologies. This initiative exemplifies the UAE's commitment to developing AI and advanced technology for the betterment of humanity, including well-being, sustainability, and global communication.

The combined strengths of Mubadala and G42 create a powerful synergy. Mubadala's proven track record as an investor in transformative technologies like AMD and GlobalFoundries, coupled with G42's expertise in AI, cloud computing, and specialised applications, positions the UAE as an attractive destination for investors, entrepreneurs, and top talent in the tech sector.

By embracing strategic partnerships and fostering innovation, the UAE is carving a dynamic path towards becoming a leading global tech hub.

Global Semiconductor Industry Trends

The Semiconductor Industry Association (SIA) announced on June 6th that global semiconductor industry sales were $46.4 billion during April 2024. This marks an increase of 15.8% compared to April 2023's total of $40.1 billion and 1.1% more than March 2024's total of $45.9 billion. Monthly sales are compiled by the World Semiconductor Trade Statistics (WSTS) organisation and represent a three-month moving average.

Additionally, a newly released WSTS industry forecast projects annual global sales increases of 16.0% in 2024 and 12.5% in 2025. SIA represents 99% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms.

"The global semiconductor industry posted double-digit sales increases on a year-to-year basis during each month of 2024," said John Neuffer, SIA president and CEO. "Worldwide sales in April increased on a month-to-month basis for the first time this year, indicating positive market momentum as we approach the middle of the year."

Neuffer added that the latest industry forecast projects strong annual growth in 2024, led by sales to the Americas market, which is expected to grow by more than 25% this year.

With inputs from WAM