Samsung, TSMC consider building chip factory in UAE: report

According to the Wall Street Journal, TSMC and Samsung Electronics, two of the world’s largest chip manufacturers, have discussed building potential chip projects in the United Arab Emirates in the next few years, which could be worth more than $100 billion (approximately Rs. 8,35,311 crore). Sunday.

The Wall Street Journal, citing people familiar with the matter, said TSMC executives recently visited the UAE and talked about a factory complex that rivals some of the company’s largest and most advanced factories in Taiwan.

South Korea-based Samsung Electronics Co, a maker of smartphones, TVs and memory chips, is also considering establishing a major new chip manufacturing operation in the country in the coming years, the newspaper said.

TSMC told Reuters it had no new investment plans to announce.

“We are always open to constructive discussions on ways to advance the semiconductor industry, but we remain focused on current global expansion projects and have no new investment plans to disclose at this time,” the company said in a statement on Monday.

Samsung declined to comment on the Journal report.

Samsung Electronics executives recently visited the UAE to discuss the idea, The Wall Street Journal reported, adding that discussions were still in the early stages and could face technical and other obstacles.

According to the Wall Street Journal, under preliminary terms being discussed, the projects will be funded by the UAE, with Abu Dhabi-based sovereign development agency Mubadala playing a central role.

The broader goal is to increase global chip production and help lower prices without hurting chipmakers’ profitability, the newspaper added.

As tech deals accelerate in the region, Washington is increasingly concerned that the UAE and other Middle Eastern countries could serve as conduits for advanced U.S. artificial intelligence technology to reach China.