The Wall Street Journal reported that TSMC and Samsung Electronics are in preliminary discussions to establish significant semiconductor projects in the United Arab Emirates, potentially worth over $100 billion. Executives from TSMC, the Taiwan-based chip giant, recently visited the UAE to explore the possibility of setting up a plant complex comparable to their largest facilities in Taiwan. Similarly, South Korea’s Samsung Electronics is contemplating major new chip-making operations in the region.
Despite the promising discussions, TSMC stated to Reuters that there are no new investment plans to announce at this time. “We are always open to constructive discussion on ways to promote the development of the semiconductor industry. However, we remain focused on our current global expansion projects,” a TSMC spokesperson said. Samsung declined to comment on the report.
The talks, which are still in the early stages, could face technical and other challenges. The potential projects would likely be financed by the UAE, with a significant role for the Abu Dhabi-based sovereign fund Mubadala. The aim of these initiatives would be to increase global chip production and reduce prices without compromising the profitability of chip manufacturers.
The growing tech collaborations in the region have raised concerns in Washington about the potential for advanced U.S. AI technology to reach China through Middle Eastern conduits.
