Two of the world’s largest semiconductor manufacturers, Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Electronics are reportedly in talks to develop potential chip projects in the United Arab Emirates, with investments that could exceed $100 billion. The discussions, which are still in the early stages, were first reported by The Wall Street Journal on Sunday.
According to sources familiar with the matter, top executives from TSMC have visited the UAE and discussed establishing a plant complex comparable in scale to the company’s most advanced facilities in Taiwan. TSMC is known for its cutting-edge semiconductor manufacturing, which supplies chips to significant tech firms globally.
Samsung Electronics, a leading South Korean tech giant known for its smartphones, televisions, and memory chips, is considering large-scale chip production operations in the UAE. The Wall Street Journal suggested that both companies evaluate the region’s potential for significant chip-making projects.
Reportedly, under the initial terms being discussed, these ambitious projects would reportedly be funded by the UAE, with Abu Dhabi’s sovereign wealth fund, Mubadala, playing a pivotal role. The overarching goal is to boost global chip production while stabilising prices, all without undermining chipmakers’ profitability.
However, a Reuters report shows TSMC has no new investment plans. The spokesperson added that they nevertheless are open to constructive discussions on ways to promote the development of the semiconductor industry. The company stated it would remain focussed on its current global expansion projects.
The Wall Street Journal further reported that Samsung executives had visited the UAE recently to explore the idea. However, discussions remain in their infancy, and potential technical and operational challenges remain.
This comes when the semiconductor industry faces unprecedented demand amid global supply chain disruptions, with governments and private companies exploring ways to expand chip production capabilities. Should these plans move forward, they would mark a significant milestone in the UAE’s efforts to position itself as a global technology hub.
