TSMC and Samsung Explore Chip Factory Projects in UAE
Two of the world's leading semiconductor manufacturers, TSMC and Samsung Electronics, are reportedly in discussions to establish chip manufacturing facilities in the United Arab Emirates, with potential investments exceeding $100 billion, according to a recent report.
Executives from TSMC have visited the UAE to explore plans for a plant complex comparable to some of its most advanced facilities in Taiwan. Meanwhile, South Korea's Samsung Electronics, known for its smartphones and memory chips, is also considering significant new chip-making operations in the region. However, both companies emphasize that discussions are still in the early stages and may encounter technical and logistical challenges.
In a statement, TSMC clarified that while it remains open to discussions aimed at advancing the semiconductor industry, it currently has no new investment plans to announce. Samsung declined to comment on the matter.
Initial terms being discussed suggest that funding for these projects would primarily come from the UAE, with the Abu Dhabi-based sovereign development vehicle Mubadala playing a central role. The overarching goal of these initiatives is to boost global chip production and reduce prices without compromising the profitability of chipmakers.
As technological investments in the region accelerate, U.S. officials have expressed increasing concern about the UAE and other Middle Eastern countries potentially becoming channels for advanced American AI technology reaching China. This scrutiny highlights the geopolitical implications of semiconductor production and technology transfer in the global market.
