UAE to build chiplet facility for defence, AI and aerospace systems

Dubai: The UAE will establish an advanced chiplet design and assembly facility under a strategic agreement between Tawazun Council for Defence Enablement and Lockheed Martin, marking a new step in the country’s push to build local capability in advanced microelectronics.

The agreement was signed on the sidelines of Make it in the Emirates 2026 and will be executed in partnership with EDGE and Khalifa University of Science and Technology.

The project is aimed at giving the UAE the ability to design and assemble advanced chiplet-based technologies, which are used across defence, aerospace, telecommunications, artificial intelligence, autonomous systems and advanced manufacturing.

HALCON, an EDGE Group company, will integrate chiplet-based processors into advanced targeting and guidance systems. The processors are expected to support more advanced onboard computation and improve target acquisition, tracking and precision engagement.

The agreement also includes a dedicated research and development centre at Khalifa University, focused on microelectronics design, talent development and industry-led research.

Shareef Hashim Al Hashmi, General-Director of Industry Development Directorate at Tawazun, said the council is helping bring together strategic partners, support capability development and establish the foundations for a local chiplet ecosystem.

He said chiplet technologies are becoming important across several advanced industries, including defence, aerospace, telecommunications, artificial intelligence, autonomous systems and advanced manufacturing..

The agreement also strengthens the UAE’s technology partnership with the US by linking local design, research and assembly capacity with Lockheed Martin’s expertise and its network of US partners.

Al Hashmi said the co-development model would support supply chain resilience, high-value jobs and innovation in both countries.

“For more than 50 years, Lockheed Martin has partnered with the UAE to bring advanced capabilities from ambition to reality. This agreement moves farther," said Daniel Mouton, Chief Executive, Lockheed Martin Middle East. "It establishes the design and assembly capacity needed to place the Emirates inside the global microelectronics value chain. Chiplets are foundational to the next generation of aerospace, defence, AI and autonomous systems, and this initiative brings together UAE vision, Emirati talent and US technology partners to build capability that can serve both national priorities and wider industrial growth.”

Khalifa University will host the dedicated R&D centre, which will train UAE nationals in chiplet design and advanced microelectronics. The centre will also connect academic research with industrial applications.

“Khalifa University is leading in the knowledge-based economy as a catalyst for economic development for the UAE," said Prof. Ebrahim Al Hajri, President of Khalifa University. "The dedicated R&D centre at the University that will be established with our partners will train UAE nationals in chiplet design and advanced microelectronics, and connect our research directly to industrial application. This is precisely the model the UAE needs to secure its position in the global technology value chain."

The talent component is central to the agreement because advanced chip design and assembly depend on specialised engineering skills. Building that capability locally gives the UAE a stronger base for future technology manufacturing and applied research.

EDGE will play a key role through HALCON’s planned integration of chiplet-based processors into defence systems. The move gives the UAE a route to apply microelectronics capability directly into locally developed advanced technologies.

Saif Al Dahbashi, President of Missiles & Weapons at EDGE, said the initiative supports the UAE’s sovereign microelectronics capability.

“This initiative marks a decisive step in advancing the UAE’s sovereign microelectronics capability. In partnership with the Tawazun Council for Defence Enablement, Lockheed Martin, and Khalifa University of Science and Technology, we are combining global expertise with national ambition to accelerate capability transfer, develop a highly specialised talent base, and embed resilient, secure supply chains within the UAE. By anchoring these capabilities locally, we are not only strengthening operational sovereignty, but also positioning the UAE as a regional hub for advanced microelectronics innovation.”

-With inputs from WAM.