Chips are no longer just electronic components hidden inside devices; they have become the foundation of the AI ​​economy, with global competition shifting from developing prototypes to having the ability to operate them efficiently and at scale. As demand for computing chips soars, the semiconductor industry intersects with energy, data centers, and digital infrastructure, creating a new map of technological power that extends beyond chip-producing nations to those capable of absorbing the computing power they require.

In this race, Saudi Arabia is emerging as a growing destination for Asian chip and AI companies, driven by its energy availability, rapid data center expansion, and ambition to build a sovereign AI ecosystem. Meanwhile, South Korea is moving to solidify its position at the heart of the value chain by increasing government spending on chips, AI, and their associated infrastructure.

The decision by Rebellion, a South Korean company specializing in artificial intelligence chips, to choose Riyadh as its regional headquarters exemplifies this new intersection between chip manufacturers and those with the capacity to operate them. Its CEO, Songyeon Park, told Asharq Al-Awsat that three key factors make Saudi Arabia a suitable location for the company: high energy levels, a commitment to developing AI infrastructure, and ambitious sovereign AI initiatives.

Park added that the convergence of these factors makes Riyadh an ideal location for Rebellion to expand its AI chip business.

The South Korean company's move comes at a time when Saudi Arabia is working to expand its capacity to meet the growing demand for computing, with increasing investments in data centers and AI projects. South Korea proposed a record-breaking government budget of 821 trillion won ($596.92 billion) for 2027 this week, a 12.8 percent increase over the current year – the largest annual increase ever. A significant portion of the budget will be allocated to artificial intelligence, semiconductors, and related infrastructure.