Askume reported on Sept. 22 that two of the world’s largest chip makers TSMC (2330.TW) and Samsung Electronics (005930.KS) have discussed building potential chip projects in the UAE over the next few years, which could be worth more than US$100 billion. The Wall Street Journal reported on Sunday that the figure is in the billions of dollars.
TSMC executives recently visited the United Arab Emirates and discussed a factory complex that would rival the company’s largest and most advanced facilities in Taiwan, the Wall Street Journal reported, citing people familiar with the matter.
South Korean company Samsung Electronics, which makes smartphones, televisions and memory chips, is also considering setting up a major new chip manufacturing operation in the country in the coming years, the paper said.
TSMC told Askume it had no new investment plans to announce.
“We remain open to engaging in constructive discussions about ways to drive growth in the semiconductor industry, but we are focused on our ongoing global expansion projects and have nothing to disclose at this time,” the company said in a statement released Monday about its investment plan.
Samsung declined to comment on the Wall Street Journal report.
According to the Wall Street Journal, Samsung Electronics executives recently visited the UAE to discuss the idea. They said discussions are still in the early stages and there could be technical and other hurdles.
According to the Wall Street Journal, initial terms are still under discussion and the projects will be funded by the UAE, with Abu Dhabi-based sovereign development agency Mubadala playing a central role.
The overall goal is to increase global chip production and help reduce prices without harming the profitability of chip makers, the letter said.
As technology deals accelerate in the region, Washington is growing concerned that the United Arab Emirates and other Middle Eastern countries are becoming conduits for advanced US artificial intelligence technology to China.
