US, Saudi Arabia move closer to semiconductor chip deal amid deepening ties: Report

A US-Saudi agreement that would allow American companies to export highly sought-after semiconductor chips to Saudi Arabia is nearing completion, according to sources familiar with the talks.

The potential deal marks another milestone in a year that has seen bilateral ties between Washington and Riyadh deepen significantly.

US President Donald Trump once again chose Saudi Arabia as his first foreign destination after taking office, repeating the move he made during his first term. His trip also included stops in Qatar and the UAE.

Negotiations over the chip export framework have been ongoing for months. The agreement is seen as part of a broader US effort to expand technology partnerships while supporting Saudi Arabia’s ambition to become a regional and global leader in artificial intelligence (AI).

Saudi Arabia’s new artificial intelligence company, Humain, broke ground on its first data centers in the Kingdom earlier this year and plans to have them up and running in early 2026 with the use of semiconductors imported from the US.

According to a report in the Wall Street Journal on Friday, the semiconductor chips would be used in data centers for training AI models and are “a core part of the Trump administration’s plans to export US technology around the world.”

During Trump’s recent visit, both Saudi Arabia and the UAE signed agreements with Nvidia, Advanced Micro Devices (AMD), and Qualcomm, underscoring the Gulf region’s drive to develop advanced computing capabilities.

However, concerns persist within Washington over China’s potential access to US-made chips and the possibility of circumventing export controls and security safeguards. Bipartisan unease has also surrounded Nvidia’s stalled deal with the UAE, which reportedly frustrated the company’s CEO, according to the WSJ.

On Wednesday, Bloomberg News reported that the US Commerce Department had issued Nvidia export licenses to approve billions of dollars worth of chip sales to the UAE, signaling approval.