South Korean AI Chipmaker Rebellions to Establish Regional Headquarters in Riyadh

The decision by South Korean AI chipmaker Rebellions to establish its regional headquarters in Riyadh reflects a changing technology map. Chips now underpin the artificial intelligence economy, but countries that can supply the energy and infrastructure to run them are becoming just as important.

Saudi Arabia is emerging as a destination for Asian chip and AI companies as it expands data centers and pursues a sovereign AI ecosystem. Rebellions CEO Sunghyun Park told Asharq Al-Awsat that three factors made the kingdom attractive: abundant energy, a commitment to developing AI infrastructure and strong ambitions in sovereign AI.

Park said the combination gave Riyadh a suitable base for expanding Rebellions’ AI chip business. The company’s move comes as Saudi Arabia works to accommodate rising demand for computing and increases investment in data centers and AI projects.

South Korea is also seeking to strengthen its position in the semiconductor value chain. The government proposed an 821 trillion won ($596.92 billion) budget for 2027, up 12.8 percent from the current year and the largest annual increase in the country’s history.

A significant share of the proposed spending would support AI, semiconductors and related infrastructure. The plan includes 21.3 trillion won for industrial water systems, electricity grids and logistics services for next-generation semiconductor infrastructure, along with 2.6 trillion won in dedicated semiconductor funding.

Seoul is betting on public spending to maintain the industry’s importance to the economy as demand grows for chips used in AI systems. South Korea is benefiting from strong demand for high-bandwidth memory, with Samsung Electronics and SK Hynix reporting strong profits linked to that market.

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High levels of energy availability, a commitment to developing AI infrastructure, and strong ambitions in sovereign AI.