Chip giants TSMC and Samsung discuss building middle eastern megafactories
Subscribe to enjoy similar stories. Two chip-making giants have discussed building huge factory complexes in the United Arab Emirates that could transform the industry in the coming years and become a cornerstone for artificial-intelligence investments in the Middle East. Top executives at Taiwan Semiconductor Manufacturing Co., the world’s largest chip maker, have visited the U.A.E.
recently and talked about a plant complex on par with some of the company’s largest and most advanced facilities in Taiwan, according to people familiar with the interactions. Samsung Electronics also is considering major new chip-making operations in the country in the years ahead, according to other people with knowledge of its strategy. Senior leaders of the South Korean company have visited the U.A.E.
recently and discussed the possibility, they said. Discussions are still in the early phases and face technical and other hurdles that mean they might not pan out. Under initial terms being discussed, the projects would be funded by the U.A.E., with a central role for Abu Dhabi-based sovereign development vehicle Mubadala, which is eager to develop a domestic tech industry.
The broader goal would be to increase global chip production and help bring chip prices down without hurting chip-makers’ profitability, some of the people said. A Mubadala spokesman said MGX, a state-backed company that is spearheading some of Abu Dhabi’s most prominent AI investments, had made semiconductor manufacturing a pillar of its strategy and was “in regular dialogue with partners around the world," although there are no specific plans currently for a facility in the U.A.E. The discussions with TSMC and Samsung reflect both the U.A.E.’s growing tech ambitions
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