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Samsung, SK hynix face AI project risks in Middle East
Samsung Electronics, LG Electronics, and SK hynix face uncertainty over Middle East AI projects as regional fighting raises risks for planned data centers in Saudi Arabia and the UAE.
South Korea agreed in November 2025 to join the US$30 billion Stargate UAE project, with Samsung and SK hynix likely memory suppliers, including HBM.
Nvidia also planned shipments to Saudi AI firm HUMAIN for Project Transcendence, a US$100 billion initiative, though the crisis could slow that timeline.
Meanwhile, LG has partnerships to supply HVAC and infrastructure for Neom and Dubai, exposing that business to potential delays. Industry officials say while projects are unlikely to stop, the pace of AI infrastructure investment could slow and budgets may be reprioritized.
🔗 Source: Korea Times
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Implications, context, and why it matters.
A big policy shift is driving Middle East AI plans
- In November 2025, U.S. export approvals let Saudi Arabia’s HUMAIN and the UAE’s G42 buy large volumes of Nvidia’s GB300 systems, though the total volume remains unknown 1.
- The decision reverses earlier rules that capped these countries at far smaller yearly shipments of advanced chips 2.
- The approvals lift Nvidia sales while supporting a U.S. push to keep Gulf AI infrastructure built on U.S. technology instead of Chinese options 2.
Cooling systems are turning into a high-stakes front in AI buildouts
- These projects make cooling plus power gear for energy-hungry AI data centers a fast-growing business for industrial suppliers.
- LG Electronics relies on HVAC (heating, ventilation, and air conditioning) work and related infrastructure for efforts like Saudi Arabia’s Neom and Dubai smart city programs, which may slip if regional priorities change.
- On the hardware side, Nvidia is expected to ship GB300 systems to G42 after U.S. approval, while Samsung Electronics plus SK hynix are likely to supply memory such as High Bandwidth Memory (HBM) used in advanced AI servers.
