The United States and Saudi Arabia are reportedly on the verge of finalizing a major agreement that would allow American semiconductor companies to export advanced chips to the Kingdom, according to a Wall Street Journal report. The deal, described as being in its final stages, reflects a broader push by Washington to diversify its technology partnerships and reduce dependence on China.
Under the proposed framework, U.S. chipmakers would supply high-end semiconductors to support Saudi Arabia’s ambitions in artificial intelligence (AI), quantum computing, and other emerging technologies. The move aligns closely with Saudi Arabia’s Vision 2030, which aims to diversify the economy and position the Kingdom as a regional technology leader. Sources familiar with the negotiations indicated that the agreement could be concluded soon, following months of talks.
The potential deal marks a strategic pivot for both nations. For the U.S., it offers an opportunity to expand semiconductor partnerships beyond East Asia, including traditional hubs like Taiwan, South Korea, and Japan, while countering China’s growing influence in the global technology sector. For Saudi Arabia, it provides a critical boost in building a domestic chip ecosystem, with plans to establish 50 semiconductor firms by 2030 and achieve its first tapeout by July 2025, according to EE Times.
Industry analysts note that the agreement is less about local manufacturing and more about enabling Saudi Arabia’s leap into AI-driven digital infrastructure. By facilitating access to advanced semiconductors, the Kingdom could accelerate initiatives in smart cities, cloud computing, and other technology-intensive sectors, strengthening its position as a digital hub in the Middle East.
The chip deal also underscores a deepening U.S.–Saudi bilateral relationship, extending beyond traditional energy and security ties to include collaboration in digital infrastructure, cybersecurity, and AI development. Experts suggest that the agreement could signal a new era in U.S. tech diplomacy, cultivating allies with capital-rich, ambitious digital transformation plans, and reinforcing global supply chain resilience.
