Two of the largest global chipmakers, Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics, are in discussions about building semiconductor plants in the United Arab Emirates (UAE), according to a report by The Wall Street Journal (WSJ). The report highlights that these potential projects could carry an investment exceeding $100 billion over the coming years.
Key executives from TSMC have reportedly visited the UAE to explore the possibility of establishing a plant complex comparable to some of the company’s most advanced facilities in Taiwan. Although TSMC has engaged in these discussions, a spokesperson said that the company remains focused on its existing global expansion plans and has no new investment announcements at this time.
Similarly, South Korea’s Samsung Electronics is considering large-scale chip manufacturing operations in the UAE. However, Samsung declined to comment on the specifics of the WSJ report. According to sources familiar with the matter, the discussions involving Samsung remain in the early stages and may face various technical and logistical challenges.
The discussions involve potential funding from the UAE, with Abu Dhabi-based Mubadala Investment Company likely playing a central role in facilitating the projects. These efforts align with broader ambitions to increase global semiconductor production, potentially lowering chip prices while maintaining profitability for manufacturers.
As technological partnerships in the Middle East gain momentum, U.S. authorities have expressed concerns about the possibility of advanced U.S. artificial intelligence technology being indirectly transferred to China through countries like the UAE.
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