Samsung, TSMC consider building chip factories in UAE: report
Two of the world’s largest chipmakers, TSMC and Samsung Electronics, have discussed building potential chip projects in the United Arab Emirates in the coming years that could be worth more than $100 billion (approximately Rs 8,35,311 crore), the Wall Street Journal reported on Sunday.
Top TSMC executives recently visited the UAE and discussed a factory complex similar to some of the company’s largest and most advanced facilities in Taiwan, the WSJ reported, citing sources familiar with the interactions.
Samsung Electronics, a South Korean maker of smartphones, TVs and memory chips, is also considering launching major new chip manufacturing operations in the country in the coming years, the newspaper said.
TSMC told Reuters it had no new investment plans to announce.
“We are always open to constructive discussions on ways to promote the development of the semiconductor industry, but we remain focused on our current global expansion projects and have no new investment plans to announce at this time,” the company said in a statement on Monday, without providing further details.
Samsung declined to comment on the WSJ report.
According to WSJ, senior Samsung Electronics officials recently visited the UAE to discuss the idea. The talks are still in the early stages and could still face technical and other obstacles.
Under preliminary terms currently under discussion, the projects would be financed by the UAE, with the Abu Dhabi-based sovereign development institution Mubadala playing a central role, WSJ reported.
The article noted that the broader goal would be to increase global chip production and help lower prices without hurting chipmakers’ profitability.
As more technology deals are struck in the region, Washington has become increasingly concerned about the role advanced US AI technology is playing in China, from the UAE and other Middle Eastern countries.
© Thomson Reuters 2024
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