Aiming to boost global semiconductor industry and reduce prices, TSMC and Samsung Electronics are discussing potential semiconductor manufacturing ventures in the UAE.
Semiconductor manufacturers TSMC and Samsung Electronics are in talks about potential chip projects in the United Arab Emirates, with a projected value exceeding $100 billion, according to a report by the Wall Street Journal.
The report stated that TSMC executives recently visited the UAE to discuss establishing a plant complex comparable to their largest facilities in Taiwan. Simultaneously, Samsung, known for its smartphones and memory chips, is exploring the possibility of launching chip-making operations in the UAE in the coming years.
While the former confirmed it has no immediate investment plans to announce, the latter stated it remains open to discussions aimed at fostering semiconductor industry growth.
However, Samsung has not commented on the report, although its senior executives have visited the UAE for discussions. These conversations are reportedly in the early stages and may encounter technical challenges.
According to Reuters, preliminary plans suggest that funding for these projects would primarily come from the UAE, mainly through ‘Mubadala’, a sovereign development fund based in Abu Dhabi. The broader aim is to boost global chip production and reduce prices while ensuring profitability for manufacturers.
As the tech landscape in the region evolves, the United States is raising concerns about the UAE and other Middle Eastern nations potentially facilitating the transfer of advanced U.S. AI technology to China.
