Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Electronics are reportedly exploring plans to build major semiconductor factories in the United Arab Emirates (UAE) to meet the growing demand for artificial intelligence (AI) computing. According to the Wall Street Journal, executives from TSMC, the world’s largest chipmaker, and emissaries from Samsung have visited the UAE for discussions on potential plant complexes that could rival TSMC’s advanced facilities in Taiwan.

Though still in the early stages, the projects could cost more than $100 billion. The UAE, aiming to become a regional hub for AI, has been seeking to diversify its economy away from petrochemicals by targeting the semiconductor industry.

Both TSMC and Samsung have yet to confirm plans, but the UAE’s investment arm, Mubadala, already owns a majority stake in GlobalFoundries, signaling the country’s long-standing ambition to break into the chip industry. However, challenges remain due to infrastructure limitations in the Gulf region, which may hinder the progress of such high-cost projects.

Related Readings