On Sunday, the Wall Street Journal reported exciting news: the world’s two largest chipmakers, TSMC and South Korea-based Samsung Electronics, are negotiating to develop revolutionary chip factories in the United Arab Emirates. Valued at over $100 billion, the project is set to significantly heighten AI investment in the Middle East.
Top executives from TSMC recently visited the UAE to discuss an ambitious new plant complex that could rival the company’s largest and most advanced facilities in Taiwan. According to the Wall Street Journal, insiders reveal that these discussions could lead to a revolutionary expansion in the region!
The report also revealed that Samsung Electronics, the leading maker of smartphones, TVs, and memory chips, is planning to launch new chip-making operations in the UAE next year. Meanwhile, TSMC has informed Reuters that it has no new investments to announce at this time.
TSMC
“We are always open to constructive discussion 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 disclose at this time.”
However, Samsung didn’t comment on the WSJ report. Other than this, WSJ also reported that Samsung’s senior figures have visited the UAE currently and discussed the idea. It shows that the discussions are in the initial stage and may have technical hurdles.
The initial discussions suggest that the projects would be funded by the UAE, with Abu Dhabi’s sovereign development fund, Mubadala, playing a key role. This collaboration could pave the way for transformative investments in the region!
The paper demonstrates that the main motive for the project is to enhance global chip production by lowering prices without harming profitability.
