TSMC and Samsung Discuss Chip Projects in UAE

(Reuters) – Two of the world’s largest chipmakers, TSMC and Samsung Electronics (KS:005930), are in talks about potential chip projects in the United Arab Emirates worth over $100 billion, as reported by the Wall Street Journal on Sunday.

Recent Developments

Top executives from TSMC have recently visited the UAE to discuss a plant complex comparable to its largest and most advanced facilities in Taiwan. Samsung Electronics, known for smartphones, TVs, and memory chips, is also exploring significant chip-making operations in the region.

TSMC’s Position

TSMC stated that it currently has no new investment plans but remains open to discussions that promote semiconductor industry development. They emphasized their focus on existing global expansion projects without providing further details.

Samsung’s Exploration

Samsung has not commented on the Wall Street Journal’s report, but senior figures from the company recently met with UAE representatives to discuss potential collaboration, though these talks are still in the early stages and may encounter challenges.

Funding and Goals

Initial discussions indicate that the projects could be funded by the UAE, with significant involvement from Abu Dhabi’s Mubadala. The overall aim is to boost global chip production and reduce prices while maintaining profitability for chipmakers.

Geopolitical Concerns

As tech deals accelerate in the region, Washington has expressed increasing concerns regarding the UAE and other Middle Eastern nations potentially facilitating the transfer of advanced U.S. AI technology to China.