The Peter Zeihan Podcast Series Should the UAE Invest in a Tech Sector? || Peter Zeihan
6 snips
Sep 9, 2025 The UAE is aggressively investing in its tech sector, eyeing semiconductor fabrication plants and expansive data centers. The discussion dives into their ambitious plans and the challenges faced, such as a shortage of skilled labor. Can the UAE overcome these hurdles to become a tech hub? The feasibility of high-tech operations in the region raises intriguing questions about the future of technology and economic diversification.
AI Snips
Chapters
Transcript
Episode notes
Fabs Are Complex, But Not The Highest-Value Step
- High-end semiconductor fabs bundle thousands of advanced machines, materials, and designs into a single, exacting operation.
- The fab is one stage in a vast supply chain and is not the highest value-added step of chip production.
Fabs Require Rare Inputs And Skilled Staff
- Building a top-tier fab requires specialized inputs like ultra-pure silicon and extreme ultraviolet machines that few places can supply or staff.
- The UAE lacks the skilled labor and upstream inputs to operate a world-class fab without heavy imports and subsidies.
Don't Expect Local Staff To Run Top Fabs
- Avoid expecting a nation without skilled semiconductor labor to run a cutting-edge fab without importing expertise and paying huge premiums.
- If a country like the UAE builds a top fab, it will likely need to import labor and accept high costs and error rates.