TSMC and Samsung in Talks for Potential $100 Billion Chip Projects in UAE

Two of the world’s largest semiconductor manufacturers, Taiwan Semiconductor Manufacturing Co. (TSMC) and South Korea’s Samsung Electronics, are in discussions to build major chip-making facilities in the United Arab Emirates (UAE), potentially worth over $100 billion, according to a report by the Wall Street Journal on Sunday.

Executives from TSMC have reportedly visited the UAE recently to explore the possibility of constructing a plant complex comparable in scale to some of the company’s largest and most advanced chip-making facilities in Taiwan. The discussions, still in early stages, could lead to one of the biggest international expansions for the chip giant.

Samsung Electronics, known for producing smartphones, TVs, and memory chips, is also said to be considering large-scale semiconductor production projects in the UAE. Senior officials from the company have reportedly visited the country and engaged in talks about future collaborations. However, Samsung has yet to confirm or comment on the matter.

In a statement on Monday, TSMC indicated its openness to discussions aimed at promoting semiconductor industry growth but clarified that it remains focused on its current global expansion projects and has no new investment plans to announce at this time.

The potential UAE chip projects would likely be funded by the country, with Abu Dhabi’s sovereign investment arm, Mubadala, expected to play a key role, according to sources cited by the Wall Street Journal. Mubadala has previously invested in the semiconductor industry and is seen as a central player in the UAE’s strategy to diversify its economy and strengthen its position in the global tech market.

The broader objective of these discussions is to boost global chip production and contribute to price reductions, while maintaining profitability for chipmakers. The semiconductor industry has faced supply chain challenges in recent years, leading to shortages and higher prices for various electronics.

Despite the promising potential of these projects, the discussions face several technical and logistical hurdles, and both companies remain focused on their existing expansion plans. As of now, there is no formal confirmation on when or if the projects in the UAE will materialize. However, if successful, these facilities could significantly enhance the UAE’s role in the global semiconductor supply chain.