Amit Midha, CEO of Alat, Saudi Arabia's new investment fund for semiconductor and artificial intelligence technology, stated that the country would divest from China if requested to do so by the US. Alat is backed by $100 billion in capital from the Public Investment Fund.

Midha emphasized the importance of maintaining separate manufacturing and supply chains, as requested by the US, but asserted that Saudi Arabia would prioritize trusted and secure partnerships with the US in the semiconductor and AI sectors. He highlighted the US as the primary partner and market for these industries.

Saudi Arabia aims to establish itself as a leader in advanced technology, including data centers, AI companies, and semiconductor manufacturing. However, the country faces increasing scrutiny from the US over its ties to China, amid concerns that it could facilitate Chinese access to technology restricted by US regulations.

In line with these developments, the US has urged Abu Dhabi-based AI firm G42 to divest from Chinese technology to maintain access to US systems. This precedent has led to a $1.5 billion investment by Microsoft Corp. in G42.

Alat is actively seeking partnerships with US tech companies and plans to announce collaborations with two firms by the end of June. These partnerships will involve co-investment with a US investment firm, although specific details about the companies or focus areas were not disclosed by Midha.