Intel CEO Heads to the Middle East for Potential Partnership on AI and Semiconductors, Hoping to Strengthen the Firm’s Finances
Intel continues to expand its global strategy in an effort to regain momentum across the semiconductor industry. Following recent partnerships with NVIDIA, SoftBank, and support from the Trump administration, Intel’s CEO Lip-Bu Tan has now set his sights on the Middle East for potential collaborations in semiconductor development and artificial intelligence infrastructure.
According to Arab News, Tan met with Abdullah Al-Swaha, Saudi Arabia’s Minister of Communications and Information Technology, to discuss potential partnerships focused on advancing chipmaking capabilities, developing AI ecosystems, and enhancing cooperation on future technologies.
“The Saudi Minister of Communications and Information Technology Abdullah Al-Swaha has met Lip-Bu Tan, the CEO of Intel, to discuss areas of partnership in developing semiconductor and advanced computing technologies, along with enhancing collaboration in building artificial intelligence infrastructure and future technologies.”
— Arab News
While the report did not disclose specific project details or investment figures, the meeting underscores Intel’s continued push to secure international partnerships that could help strengthen its financial position and accelerate foundry expansion outside traditional markets. The timing aligns with Saudi Arabia’s broader economic transformation agenda under Vision 2030, which prioritizes technology, innovation, and diversification away from oil-based revenues.
Saudi Arabia, despite its limited experience in semiconductor manufacturing, has been aggressively pursuing investment in high-tech industries, particularly artificial intelligence, cloud computing, and data infrastructure. The country’s Public Investment Fund (PIF) has already played a major role in global tech ventures, backing companies such as SoftBank, which itself has partnered with Intel in several AI and data processing initiatives. This overlap makes a potential Intel–Saudi collaboration a natural extension of existing investment networks.
For Intel, the prospect of expanding to the Middle East could serve multiple purposes. First, it could secure fresh capital to support its foundry ambitions amid the intensifying competition from TSMC and Samsung. Second, it could provide geopolitical diversification, reducing reliance on manufacturing hubs in Asia and Europe. Finally, establishing a presence in a resource-rich nation like Saudi Arabia could give Intel access to long-term energy stability and financing, both critical for sustaining large-scale semiconductor fabrication.
It’s worth noting that similar efforts have been made before. Qatar previously approached TSMC about establishing chip fabrication facilities in the Gulf region, but the Taiwanese firm reportedly declined due to concerns over labor costs, infrastructure readiness, and supply chain challenges. Intel, however, is in a different position, the company has been actively seeking new avenues of global expansion and investment support to reinforce its Foundry Services Division, particularly after recent financial setbacks and delays in advanced process technologies.
Although no official announcements have been made regarding an Intel facility in Saudi Arabia, the meeting between Lip-Bu Tan and Abdullah Al-Swaha signals a clear intent to explore mutual opportunities in advanced computing, semiconductor research, and AI infrastructure. With the Gulf nations shifting their focus from petroleum exports to digital economies, collaborations like these could pave the way for a new era of semiconductor investment in the Middle East.
Intel’s outreach reflects a broader industry trend where major players are pursuing strategic alliances to mitigate supply chain vulnerabilities and align with emerging markets eager to become technology leaders. If the discussions lead to tangible agreements, Intel could soon play a pivotal role in shaping the region’s technological ambitions while simultaneously reinforcing its global footprint and financial foundation.
Would you like to see Intel establish a chipmaking presence in the Middle East, or do you think it should focus on strengthening its U.S. and Asian fabs first? Share your thoughts below.
