TSMC, Samsung Explore $100 Bn Chip Manufacturing Projects In UAE
Early talks with the UAE could result in massive semiconductor facilities backed by Abu Dhabi's Mubadala
TSMC and Samsung Electronics are in talks about potentially building chip manufacturing facilities in the United Arab Emirates (UAE), with a value of more than $100 billion at stake, according to the Wall Street Journal (WSJ). The conversations occur as both businesses consider increasing their global semiconductor production capacities.
Top officials from Taiwan's TSMC recently visited the UAE to discuss the creation of a chip manufacturing complex on the scale of some of their largest and most modern facilities in Taiwan, according to WSJ sources. However, TSMC has claimed that it does not have any additional investment plans to share at the moment. "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," according to a statement from TSMC.
Samsung Electronics, based in South Korea, is reportedly eyeing large-scale chip manufacturing operations in the UAE, however, the company declined to comment on the claim. According to the WSJ, senior executives from Samsung have visited the UAE to discuss the idea, although talks are still in the early stages and may meet technical obstacles.
According to the original parameters being considered, the UAE would fund the semiconductor projects, with Abu Dhabi-based sovereign development vehicle Mubadala playing a key role. As per the WSJ report, the overarching goal is to increase global chip manufacturing while also lowering prices without significantly harming chip manufacturers' profits.
