TSMC, Samsung consider building $100 billion chip factories in UAE
The projects, which will help meet the soaring demand for AI computing, could be funded by the UAE, with the Abu Dhabi-based sovereign development vehicle Mubadala playing a key role, the WSJ says.
TSMC and Samsung Electronics have discussed building chip projects in the UAE that could be worth over USD 100 billion, according to a report by the Wall Street Journal.
Senior executives from TSMC recently visited the UAE to discuss plans for a plant complex on par with the tech giant’s most advanced facilities in Taiwan, the report said.
South Korea’s Samsung Electronics is also said to be mulling major chip-making operations in the UAE in the coming years.
The projects, which will help meet the soaring worldwide demand for AI computing, could be funded by the UAE, with the Abu Dhabi-based sovereign development vehicle Mubadala playing a key role, the report says.
Mubadala is the majority owner of GlobalFoundries, the former factory operations of AMD.
“We are always open to constructive discussion on ways to promote development of the semiconductor industry, but we remain focused on our current global expansion projects and have no new investment plans to disclose at this time,” TSMC told Reuters in a statement.
The UAE wants to become a regional hub and testing ground for AI amid a broader push by Gulf states to reduce their reliance on petrochemicals.
Abu Dhabi’s AI investment company, MGX, had begun preliminary discussions with OpenAI regarding chip business investments, according to a report earlier this year.
However, the United States is concerned that Middle Eastern countries could become a conduit for advanced US AI technology reaching China.
