October 20, 2025 – Despite receiving government investments, Intel is still navigating through a tough landscape. The company has been tirelessly striving for breakthroughs, whether by refining its chip foundry division or re-evaluating strategies to ensure financial stability.
According to Arab News, Intel’s CEO, Lip-Bu Tan, has met with Abdullah Al-Swaha, Saudi Arabia’s Minister of Communications and Information Technology. The discussion centered around potential collaborations in the semiconductor and AI sectors. This move might just open up a new “capital front” for the struggling chipmaker.
Although the specifics of the meeting remain undisclosed, one thing is clear: Intel is actively seeking partnerships with one of the Middle East’s largest economies. The focus is on jointly developing advanced “computing technologies” and semiconductors.
Currently, Gulf nations like the UAE and Saudi Arabia are undergoing significant economic policy shifts, moving away from oil dependency towards technology-driven growth. They are making substantial expansions in areas such as AI and semiconductors. While Saudi Arabia has limited experience in manufacturing, the country is eager to ramp up investments in emerging industries.
Given Saudi Arabia’s abundant resources to sustain large-scale production operations, it’s not surprising that Intel is considering setting up chip manufacturing facilities there. Interestingly, TSMC also received a request from Qatar to establish a plant. However, due to high labor costs and supply chain constraints, TSMC ultimately declined the offer.
