The Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics are in discussions with the United Arab Emirates to potentially establish megafactories in the region, as reported by The Wall Street Journal. These talks include the construction of facilities that could rival TSMC’s largest operations in Taiwan, with projects possibly exceeding $100 billion in value, primarily funded by the UAE.
Abu Dhabi’s sovereign wealth fund Mubadala is set to play a pivotal role in financing these ambitious projects, aiming to boost the UAE’s domestic semiconductor production. Similarly, South Korea’s Samsung Electronics is also exploring opportunities to develop chip manufacturing facilities in the UAE, with senior executives recently visiting to assess possibilities.
The UAE is actively seeking to enhance its status as a global hub for advanced technology and artificial intelligence, aligning with broader efforts to diversify its economy. However, these discussions are still in preliminary stages.
The potential expansion comes amid heightened geopolitical tensions, with the US and China vying for influence in the region’s burgeoning tech industry. Concerns have been raised by US officials regarding the future exports of advanced AI chips from UAE-based factories to China, highlighting the strategic nature of these negotiations.
The development of such significant semiconductor facilities could transform the tech landscape in the Middle East, positioning the UAE as a key player in the global supply chain for AI technologies and beyond.
