Analysis of the Impact of the Expansion of U.S.-Led Technology Supply Chain Alliances on the Global Semiconductor and Tech Investment Landscape

I have now gathered sufficient information, and will provide you with a systematic and comprehensive analysis.

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According to

, U.S. Under Secretary of State for Economic Affairs, in an interview with Reuters, the U.S.-led initiative to strengthen AI and semiconductor supply chain security[1]. This move marks a further deepening of the U.S. technological geopolitical layout in the Middle East.

From December 12 to 13, 2025, the U.S. hosted the

in Washington D.C., during which the U.S. and multiple allies signed the ‘Pax Silica Declaration’[2][3]. The declaration aims to establish a trusted supply chain ecosystem focused on artificial intelligence, critical minerals, and related technologies.

Country	Core Role
U.S.	Leadership and coordination, technical standard-setting
Japan	AI algorithm and semiconductor design R&D
South Korea	Expanding semiconductor manufacturing capacity
Singapore	AI infrastructure and cross-border data exchange coordination
Netherlands	Enhancing chip production and logistics resilience
United Kingdom	Advanced materials and AI hardware innovation
Israel	AI cybersecurity and security technologies
United Arab Emirates	AI-driven industrial applications and critical minerals investment
Australia	Critical mineral resource supply and AI research collaboration

Taiwan, China (sharing semiconductor manufacturing technology), EU (coordinating regulatory frameworks), Canada (resource and research support), Organization for Economic Co-operation and Development (OECD) (policy guidance)[3].

The Chip 4 Alliance (U.S., Japan, South Korea, Taiwan, China) remains the core framework of the U.S. semiconductor strategy. This alliance controls approximately

and plays a key role in supply chain coordination[4].

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According to in-depth analysis by Al Arabiya, Saudi Arabia is emerging as one of the world’s digital powers[5]:

• Investment Scale
  : Saudi Arabia has announced
  $50 billion
  in semiconductor investments, with the subsequent scale expected to expand to
  hundreds of billions of U.S. dollars
• GPU Export License
  : The U.S. has approved the export of
  35,000 high-end GPUs
  to Saudi Arabia (including NVIDIA’s most advanced Blackwell GPU)
• Strategic AI Partnership
  : A new Saudi-U.S. strategic AI partnership has been established

• Qualcomm will establish a chip design center in Saudi Arabia
• HPE, AMD and Saudi Arabia’s Alfanar company will collaborate to produce local servers
• AWS will build advanced cloud computing and AI centers in Saudi Arabia
• Intel, Supermicro, Groq, and NVIDIA will respectively cooperate with Saudi Arabia’s Humain, Aramco Digital, DataVolt and other companies to co-build AI data centers

Abu Dhabi is establishing a semiconductor center through a

, one of the largest semiconductor investments in the Middle East[6].

• Stargate UAE Project
  : The first phase is scheduled to be operational in 2026
• Nvidia-G42 Cooperation
  : Advancing AI infrastructure construction
• Khazna Data Centers
  : Expanding GPU clusters to enhance the carrying capacity of high-computing cloud regions

Qatar has established

(supported by the Qatar Investment Authority, QIA), which is responsible for the development and operation of local and overseas AI infrastructure[7].

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The signing of the Pax Silica Declaration marks a shift in the global semiconductor supply chain from

to [2]:

┌─────────────────────────────────────────────────────────────┐
│              New Pattern of Global Semiconductor Supply Chain │
├─────────────────────────────────────────────────────────────┤
│                                                             │
│  U.S.-Led 'Trusted Alliance' Supply Chain System             │
│  ┌─────────┐  ┌─────────┐  ┌─────────┐  ┌─────────┐       │
│  │ U.S.    │  │ Japan   │  │ S. Korea│  │ Singapore│       │
│  │Netherlands││UK       │  │ Israel  │  │ UAE      │       │
│  │ Saudi   │  │ Qatar   │  │Australia│  │Taiwan, CN│       │
│  └─────────┘  └─────────┘  └─────────┘  └─────────┘       │
│         ↓           ↓           ↓           ↓              │
│  Core Tech   Design R&D  Manufacturing Capacity  Resource Supply │
│                                                             │
├─────────────────────────────────────────────────────────────┤
│                                                             │
│  Independent Supply Chain System                             │
│  ┌─────────────────────────────────────────────────────┐   │
│  │ China, Russia, and some emerging markets             │   │
│  └─────────────────────────────────────────────────────┘   │
│                                                             │
└─────────────────────────────────────────────────────────────┘

Gulf Cooperation Council (GCC) countries are laying out a complete rare metal supply chain[7]:

Country	Investment Initiatives	Strategic Objectives
Saudi Arabia	Ma’aden partners with Alcoa, Ivanhoe Electric	Expand copper and aluminum mining and processing
UAE	ADQ establishes a $1.2 billion joint venture with Orion	Lay out upstream resources of critical minerals
Qatar	QIA partners with Ivanhoe Mines	Invest in African critical minerals

According to PwC’s 2026 GCC Economic Outlook, AI computing infrastructure is undergoing major changes[7]:

• Construction Speed Advantage
  : The construction cycle of data centers in the GCC region is only
  18-24 months
  , far faster than the
  36-72 months
  in the U.S.
• Sovereign Cloud Capability
  : Meets the needs of large-scale AI model training, reducing reliance on overseas computing power
• Data Sovereignty Policy
  : Sensitive data such as government services, healthcare, and finance is required to operate on local infrastructure

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According to D&B’s supply chain report[8], between 2019 and 2025:

• U.S. imports from China fell from
  $449 billion
  to
  $219 billion
  , a decline of over
  50%
• The ‘China Plus One’ strategy has driven supply chain relocation to India, Vietnam, Mexico, and other regions

Investment Sector	Investment Entity	Investment Scale	Expected Payback Period
Semiconductor Manufacturing	GlobalFoundries (Abu Dhabi)	$10 billion	5-7 years
AI Infrastructure	Saudi Humain, UAE Stargate	$50+ billion	3-5 years
Critical Minerals	ADQ, QIA, Ma’aden	Billions of U.S. dollars	7-10 years
Cloud Computing	AWS, Google, Microsoft	Billions of U.S. dollars	3-4 years

1. Advanced Packaging and Testing
   • Southeast Asia (Singapore, Malaysia) is taking on more orders
   • The Middle East has begun to lay out backend processes

2. Critical Mineral Mining and Processing
   • Strategic minerals such as copper, gallium, germanium, indium, and antimony
   • Resource development in Australia and Africa

3. AI Data Centers and Computing Infrastructure
   • Large-scale investments in Saudi Arabia, the UAE, and Qatar
   • Growing demand for edge computing and sovereign clouds

4. Semiconductor Equipment and Materials
   • Japan and the Netherlands’ dominant position in equipment
   • South Korea’s continued investment in memory chips

Risk Type	Specific Performance	Impact Assessment
Geopolitical Risk	Intensifying U.S.-China technological confrontation	High
Policy Uncertainty	Changes in export control policies	High
Supply Chain Security	Excessive concentration of key nodes	Medium
Talent Shortage	Expected shortage of 1 million engineers by 2030	Medium

• U.S.
  : Domestic manufacturing expansion under the CHIPS Act incentives
• Japan
  : Advanced materials and equipment suppliers
• South Korea
  : Memory chips and advanced manufacturing

• Singapore
  : Southeast Asian semiconductor hub
• UAE/Saudi Arabia
  : Emerging AI and computing centers
• India
  : Manufacturing relocation and design services

• Vietnam, Malaysia, Indonesia (manufacturing relocation)
• Australia (critical mineral supply)
• Europe (Germany, France semiconductor revitalization plans)

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The strategic logic behind the U.S.'s promotion of technology supply chain alliance expansion includes[2][5]:

1. Reduce Supply Chain Risks
   • Reduce reliance on Chinese supply chains
   • Achieve ‘friend-shoring’ of key technologies

2. Maintain Technological Leadership
   • Strengthen control over advanced semiconductor technologies
   • Restrict the flow of sensitive technologies to competitors

3. Build an Economic Security Moat
   • Integrate allies into a unified technical standard system
   • Coordinate export control and investment review policies

• Narrowing of technology access channels
• Restrictions on imports of key equipment
• Impeded talent mobility

• Accelerate independent R&D (7nm and below processes)
• Expand cooperation along the ‘Belt and Road’
• Establish a supply chain system independent of Western alliances

The technological cooperation between the U.S. and the Middle East marks a historic transformation of bilateral relations from

to [5]. Just as the 1945 Quincy Conference opened the oil era, current cooperation is ushering in a new era of ‘chips and computing power’.

• Promote economic diversification under Saudi Vision 2030
• Use energy cost advantages (30%-40% lower than the U.S.) to support high-energy-consumption AI computing
• Build a global AI supercomputing center

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1. Clear Alliance Expansion Trend
   : The U.S.-led technology supply chain alliances are expanding from the core circle of Japan, South Korea, and Taiwan, China to strategic regions such as the Middle East

2. Supply Chain Pattern Restructuring
   : The global semiconductor supply chain is shifting from an efficiency-oriented model to a security-oriented one, forming a dual structure where a ‘trusted alliance’ and an ‘independent system’ coexist

3. Investment Hot Spot Shift
   : The Middle East is emerging as an emerging hot spot for global tech investment, and $50 billion-level investment commitments will reshape the regional industrial landscape

4. Deepening Geopolitics
   : Technology supply chains have fully become the core battlefield of geopolitical games

Investment Theme	Recommended Allocation	Risk Level
U.S. Semiconductor Manufacturing Revival	Core Allocation	Low-Medium
Middle East AI Infrastructure	Strategic Increase in Allocation	Medium-High
Japanese Equipment and Materials	Stable Allocation	Low
Southeast Asian Packaging and Testing	Diversified Allocation	Medium
China’s Independent Substitution	Long-Term Focus	High

1. Policy Dynamics
   : Adjustments to U.S. Department of Commerce export control policies, progress in CHIPS Act fund disbursement
2. Technological Progress
   : Mass production timeline for 2nm processes, breakthroughs in advanced packaging technologies
3. Corporate Actions
   : Adjustments to global capacity layout by major semiconductor manufacturers
4. Regional Development
   : Construction progress of the Middle East semiconductor ecosystem

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[1] Reuters - ‘Qatar and UAE to join U.S.-led effort to bolster technology supply chain’ (https://www.reuters.com/technology/artificial-intelligence/)

[2] LinkedIn - CIIS UK & AA - Pax Silica Summit Coverage (https://www.linkedin.com/posts/cises-uk_aa-pax-silica-15122025-activity-7406371676466151424-fVpc)

[3] Newsweek - ‘Full List of Countries in New US Alliance To Win Chip War’ (https://www.newsweek.com/full-list-countries-us-alliance-chip-war-china-11212110)

[4] Wikipedia - CHIPS and Science Act, Chip 4 Alliance Section (https://en.wikipedia.org/wiki/CHIPS_and_Science_Act)

[5] Al Arabiya - ‘MBS in Washington: A new era of strategic tech-alliance’ (https://english.alarabiya.net/views/2025/12/14/mbs-in-washington-a-new-era-of-strategic-techalliance)

[6] PatentPC - ‘The Global Chip Race: Who’s Building the Most Semiconductor Fabs’ (https://patentpc.com/blog/the-global-chip-race-whos-building-the-most-semiconductor-fabs-latest-stats)

[7] PwC - ‘Five GCC economic themes to watch in 2026’ (https://www.pwc.com/m1/en/blog/five-economic-themes-to-watch-2026-gcc.html)

[8] D&B - ‘Building Future-Ready Supply Chains 2025’ (https://www.dnb.co.in/files/reports/Building-Future-Ready-Supply-Chains-2025.pdf)