한국 반도체 기업들이 주권 부유基金의 일환으로 사우디아라비아로 칩 생산 및 컴퓨팅 사업을 확장하고 있다.
Chips are no longer mere electronic components concealed within devices; they have become the foundation of the artificial intelligence economy. Global competition is shifting from model development to the capacity to run those models efficiently and at scale.
Rising demand for computing chips is driving the semiconductor industry to converge with energy, data centers, and digital infrastructure. This convergence is redrawing the map of technological power, extending influence beyond chip-manufacturing nations to those capable of hosting and operating the required computing capacity.
Within this race, Saudi Arabia is emerging as a key destination for Asian chip and AI firms, driven by abundant energy, rapid data center expansion, and ambitions to build a sovereign AI ecosystem. South Korea, meanwhile, is fortifying its position at the core of the value chain through increased government investment in semiconductors, AI, and supporting infrastructure.
South Korean AI chipmaker Rebellions’ decision to establish its regional headquarters in Riyadh exemplifies this intersection between chip manufacturers and operators. CEO Sunghyun Park told Asharq Al-Awsat that three primary factors make Saudi Arabia an attractive destination: high energy availability, a firm commitment to developing AI infrastructure, and strong ambitions in sovereign AI. Park noted that this combination positions Riyadh as an ideal base for expanding the company’s AI chip operations. The relocation coincides with Saudi Arabia’s efforts to scale its computing capacity, supported by rising investments in data centers and AI initiatives.
South Korea has proposed its largest-ever government budget, allocating 821 trillion won ($596.92 billion) for 2027—a 12.8 percent increase from the current fiscal year. A substantial portion of this historic allocation will target AI, semiconductors, and supporting infrastructure. Seoul is leveraging this expanded public spending to defend its standing in the semiconductor sector, a critical economic driver, as global demand surges for AI-specific chips. The budget earmarks 21.3 trillion won for industrial water systems, electricity grids, and logistics networks essential to next-generation semiconductor infrastructure, alongside a dedicated 2.6 trillion won semiconductor fund. Domestically, South Korean firms are capitalizing on the global surge in demand for high-bandwidth memory (HBM) used in AI systems, with Samsung Electronics and SK Hynix reporting robust profits fueled by the trend.
Park emphasized that the sovereign dimension of AI has become a decisive factor in national technology procurement, particularly as certain data and applications intersect with sensitive sectors. He linked the push for locally managed AI to “national security,” noting that sensitive domains like nuclear energy or defense programs require governments to dictate usage parameters, establish operational boundaries, and run systems entirely domestically. This shift underscores a broader market trend: governments and enterprises are no longer focused exclusively on accessing advanced models. Increasingly, they are prioritizing data residency, deployment locations, and infrastructure ownership.
Rebellions already maintains financial ties to Saudi Arabia; Park confirmed that Aramco invested in the company approximately two years ago. Additionally, Rebellions is engaged in ongoing discussions with HUMAIN to strengthen supply chains for AI infrastructure technologies. Park described HUMAIN as one of the most influential AI organizations in Saudi Arabia and globally, adding that strategic cooperation could significantly advance the region’s AI ecosystem. These developments align with Saudi Arabia’s continued expansion of digital infrastructure, particularly data centers. For chip and computing specialists, this creates a regional market that extends beyond component sales to active participation in building the broader AI ecosystem.
Rebellions argues that AI chip competition will no longer hinge solely on processing speed, measured in tokens per second. Instead, the market will increasingly be defined by the long-term operational costs of running AI workloads. Park stated the company is prioritizing technologies that deliver “higher AI performance at a lower economic cost.” He explained that while throughput matters, customers increasingly weigh “cost per token” alongside raw processing speed. Rebellions’ architecture emphasizes inference over model training, rather than splitting R&D efforts evenly across both. Park noted that inference is steadily becoming commoditized, meaning enterprises and end-users will prioritize reliable outputs at competitive prices, largely indifferent to the underlying hardware.
Energy considerations are growing increasingly critical as data center power consumption escalates. Electricity pricing and chip efficiency have now become central variables in the economics of scaling AI deployments. This dynamic illustrates how Riyadh and Seoul approach the AI race from complementary angles. South Korea is channeling capital into semiconductors, power grids, and industrial infrastructure to secure its place in the value chain. Saudi Arabia, conversely, is scaling energy supply, physical infrastructure, and data centers to absorb the next wave of computational demand.
Consequently, the geopolitical AI race has evolved beyond model development and software. It now hinges on chip manufacturing, data center ownership, energy provision, and the ability to deliver integrated infrastructure at the lowest possible cost.