TSMC and Samsung Explore Chip Factory Investments in UAE

TSMC and Samsung Explore $100 Billion Chip Manufacturing Projects in UAE

Two of the world’s biggest chipmakers, DSMC and Samsung Electronics, have discussed developing chip projects in the United Arab Emirates worth more than $100 billion, the Wall Street Journal reported on Sunday.

DSMC’s top officials recently visited the United Arab Emirates and talked about a plant complex parallel to the company’s much larger and more advanced facilities in Taiwan, the WSJ said, citing people familiar with the contacts.

South Korea-based Samsung Electronics, which makes smartphones, TVs and memory chips, is also considering major new chip-making operations in the country in the coming years. DSMC told Reuters it had not announced any new investment plans. “We are always open to a constructive discussion on ways to improve the growth of the semiconductor industry, but we are focused on our current global expansion plans and have no new investment plans to announce at this time,” it said in a statement on Monday. in detail.

Samsung declined to comment on the WSJ report.

Senior figures from Samsung Electronics recently visited the UAE to discuss the idea, the WSJ reports, adding that discussions are still at an early stage and may face technical and other hurdles.

Under the initial terms being discussed, the UAE would fund the projects, with Abu Dhabi-based sovereign development vehicle Mubadala playing a central role, according to the WSJ.

The paper added that the broader goal would be to boost global chip production and help lower prices without hurting chipmakers’ profits.

As technology deals accelerate in the region, the United Arab Emirates and other Middle Eastern countries have advanced U.S. capabilities reaching China. Washington is more concerned about becoming a conduit for AI technology.