According to the Wall Street Journal, two leading chipmakers, TSMC and Samsung Electronics, have engaged in discussions regarding the establishment of potential chip projects in the United Arab Emirates (UAE) in the upcoming years with a collective value exceeding $100 billion.
Executives from TSMC have reportedly visited the UAE to explore the construction of a plant complex comparable in scale and sophistication to the company’s prominent facilities in Taiwan.
Similarly, Samsung Electronics, renowned for its smartphones, TVs, and memory chips, is also contemplating significant ventures in chip manufacturing within the country in the future.
TSMC responded to Reuters by stating that they currently have no new investment announcements to make and reiterated their commitment to ongoing global expansion projects. Samsung, however, declined to comment on the WSJ report.
As noted by the WSJ, the discussions involving senior figures from Samsung Electronics and the UAE are still in preliminary stages and may encounter technical and other challenges. These projects would be funded by the UAE, with Mubadala, a sovereign development entity based in Abu Dhabi, playing a key role in the initiatives.
The overarching objective of the projects is to bolster global chip production and drive price reductions without compromising the profitability of chip manufacturers.
Against a backdrop of accelerated tech agreements in the region, there is a growing concern in Washington about the UAE and other Middle Eastern nations serving as pathways for advanced U.S. AI technology to reach China.
