Two of the world’s leading semiconductor manufacturers, Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics, are reportedly in discussions to establish substantial chip production facilities in the United Arab Emirates, with potential investments exceeding $100 billion, according to the Wall Street Journal.
Executives from TSMC recently visited the UAE to explore plans for a plant complex comparable to some of their most advanced facilities in Taiwan. Meanwhile, Samsung, a major player in smartphones, televisions, and memory chips, is also evaluating the prospects of launching significant new chip-making operations in the region.
In a statement to Reuters, TSMC clarified that while it is open to discussions aimed at advancing the semiconductor industry, it currently has no new investment plans to announce. “We remain focused on our existing global expansion projects and have no new investment plans to disclose at this time,” the company stated.
Samsung did not provide a comment regarding the Wall Street Journal report. However, sources indicate that senior executives from Samsung have recently visited the UAE to discuss potential projects, though these talks are still in the preliminary stages and may encounter various technical and logistical challenges.
According to initial discussions, the UAE government would fund these projects, with significant involvement from Mubadala, the Abu Dhabi-based sovereign development fund. The overarching aim is to enhance global chip production and reduce prices while ensuring that semiconductor companies maintain their profitability.
As investment in technology accelerates in the region, U.S. officials have expressed growing concerns that the UAE and other Middle Eastern nations could serve as channels for advanced American AI technology to reach China.
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