TSMC and Samsung Explore Building Chip Factories in UAE, Wall Street Journal Reports
TSMC and Samsung Electronics are considering establishing chip factories in the UAE, with a combined value of over $100 billion. The UAE would fund the projects, with Mubadala playing a key role in their financing. The goal is to increase global chip production and lower prices while maintaining chip makers' profitability.
According to sources cited by the WSJ, top TSMC executives recently visited the UAE to discuss the possibility of building a plant complex comparable to their largest and most advanced facilities in Taiwan.
Similarly, Samsung Electronics, a well-known manufacturer of smartphones, televisions, and memory chips, is reportedly considering establishing significant new chip production operations in the UAE in the coming years, though the sources remain anonymous.
Both TSMC and Samsung have not yet provided comments in response to a request for information from Reuters.
The discussions involving senior representatives from Samsung Electronics and the UAE are still in the preliminary stages and may encounter technical and other challenges, as reported by the WSJ.
According to the Wall Street Journal, the UAE will finance the proposed projects, with Mubadala, an Abu Dhabi-based sovereign development entity, playing a key role in the funding process.
The overarching goal of these potential ventures is to increase global chip production and contribute to lower prices while maintaining chip manufacturers' profitability.
Concerns have been raised in Washington about the UAE and other Middle Eastern nations potentially serving as conduits for advanced US artificial intelligence technology to reach China, as tech agreements in the region accelerate.
TSMC and Samsung Electronics are considering establishing chip factories in the UAE, with a combined value exceeding US$100 billion.
The projects would be funded by the UAE, with Mubadala playing a key role in the financing.
The aim is to enhance global chip production and reduce prices without impacting chip-makers' profitability.
Source: REUTERS