  We examine gauge theories defined in higher dimensions where theextra
dimensions form a fuzzy (finite matrix) manifold. First we reinterpret these
gauge theories as four-dimensional theories with Kaluza-Klein modes and then we
perform a generalized \`a la Forgacs-Manton dimensional reduction. We emphasize
some striking features emerging in the later case such as (i) the appearance of
non-abelian gauge theories in four dimensions starting from an abelian gauge
theory in higher dimensions, (ii) the fact that the spontaneous symmetry
breaking of the theory takes place entirely in the extra dimensions and (iii)
the renormalizability of the theory both in higher as well as in four
dimensions. Then reversing the above approach we present a renormalizable four
dimensional SU(N) gauge theory with a suitable multiplet of scalar fields,
which via spontaneous symmetry breaking dynamically develops extra dimensions
in the form of a fuzzy sphere. We explicitly find the tower of massive
Kaluza-Klein modes consistent with an interpretation as gauge theory on $M^4
\times S^2$, the scalars being interpreted as gauge fields on $S^2$. Depending
on the parameters of the model the low-energy gauge group can be of the form
$SU(n_1) \times SU(n_2) \times U(1)$.
