Putting an end to all the rumours, TSMC quashes talk of a UAE factory, sticking to plans near its biggest global clients: the US, Japan, and Germany.
Taiwan Semiconductor Manufacturing Company (TSMC) has denied speculation that it plans to set up a manufacturing facility in the Middle East. Chairman and CEO C.C. Wei dismissed the rumours during the company’s annual shareholders’ meeting on Tuesday.
Responding to reports suggesting TSMC was considering a chip plant in the United Arab Emirates (UAE), Wei negated unequivocally. He emphasised that TSMC’s strategy remains focused on regions near its major clients, where customer demand is strongest.
The clarification follows earlier claims that TSMC had held talks with the White House and the UAE’s state-owned investment firm, MGX, about a potential project. These discussions reportedly involved US Special Envoy to the Middle East, Steve Witkoff.
According to a report by The Economic Times, Wei categorised such reports as unfounded, likening them to previous speculation about a possible TSMC acquisition of Intel shares.
He reaffirmed that the company will continue to concentrate its expansion efforts in the US, Japan, and Germany to support leading tech and automotive firms.
Despite rising concerns about possible US tariffs on Taiwanese imports, including semiconductors, TSMC is maintaining its 2025 sales growth forecast in US dollars. Wei said customers have not changed their order volumes, even with tariff threats looming.
He noted that while any imposed tariffs would be absorbed by importers, the wider risk lies in reduced consumer demand due to rising prices. He told shareholders that global economic slowdown might be the only point of concern.
Wei also highlighted that demand for AI chips remains strong and currently exceeds supply, with TSMC working to boost production to meet this growing need.
No tariffs have been officially enacted yet, but proposals of up to 100 per cent on chips remain under discussion.
