U.S. to Forge AI Supply Chain Pacts with Eight Allies, Including Israel and UAE

Washington, D.C. – The United States is set to pursue new agreements with eight allied nations to bolster supply chains for computer chips and critical minerals vital to artificial intelligence (AI) technology, as announced by the State Department’s top economic official. Building on initiatives from the first Trump administration, the effort aims to reduce reliance on China and secure global tech leadership. The plan kicks off with a White House meeting on December 12, 2025, involving representatives from Japan, South Korea, Singapore, the Netherlands, the United Kingdom, Israel, the United Arab Emirates, and Australia.

Notably, Israel and the UAE are the only Middle Eastern countries in this strategic framework, highlighting their roles in semiconductors and rare earths. Israel’s expertise in chip design and UAE’s mineral reserves position them as key partners. The agreements will focus on joint R&D, trade barriers removal, and diversified sourcing to counter China’s dominance in 80% of global rare earths.

This initiative, part of the CHIPS Act extension, addresses vulnerabilities exposed by recent supply disruptions. Officials emphasize it will create jobs and advance AI innovation while enhancing national security.

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