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TSMC, Samsung Tight-Lipped on UAE Mega Chip Plants Claims: WSJ

Top executives from the Taiwanese tech giant were said to be discussing building a factory on a par with some of its biggest home sites


A logo of taiwanese chip giant TSMC is seen at southern Taiwan science park in Tainan, Taiwan December 29, 2022.REUTERS/
A logo of taiwanese chip giant TSMC is seen at southern Taiwan science park in Tainan. Photo Reuters

 

Two of the world’s biggest chipmakers – TSMC and Samsung Electronics – are looking at the possibility of building chip plants in the United Arab Emirates, the Wall Street Journal reported.

The firms have reportedly discussed potential manufacturing projects in the UAE which could be worth more than $100 billion, with top TSMC executives recently visiting the Middle East.

It’s claimed they talked about a plant complex on a par with some of the company’s largest and most advanced facilities in Taiwan, the WSJ said, citing people familiar with the interactions.

South Korea-based Samsung Electronics, a maker of smartphones, TVs and memory chips, is also considering major new chip-making operations in the country in the years ahead, the paper said.

TSMC told Reuters it had no new investment plans to announce.

 

Also on AF: US Plan to Ban Chinese Tech in Vehicles on American Roads

 

“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,” it said in a statement on Monday, without elaborating.

Samsung declined to comment on the WSJ report.

Senior figures at Samsung Electronics visited UAE recently and discussed the idea, WSJ reported, adding that the discussions were still in the early phases and may face technical and other hurdles.

Under initial terms being discussed, the projects would be funded by the UAE, with a central role for Abu Dhabi-based sovereign development vehicle Mubadala, according to WSJ.

The paper added that the broader goal would be to increase global chip production and help bring prices down without hurting chip-makers’ profitability.

As tech deals in the region speed up, Washington has become increasingly concerned about the UAE and other Middle Eastern countries becoming a conduit for advanced US AI technology reaching China.

 

  • Reuters with additional editing by Sean O’Meara

 

Read more:

US-China Tensions See Tech Firms Offer More For TSMC Chips

TSMC Shares Fall on Trump Remark ‘Taiwan Should Pay for Defence’

Microsoft Says UAE Deal Could See Transfer of US Chips, AI Tech

Taiwan’s TSMC Joins Trillion Dollar Club Amid AI Frenzy

TSMC Sees ‘Golden Age’, With AI Fuelling 10% Chip Growth

 

Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.