Two of the world's largest chipmakers, TSMC and Samsung Electronics, have reportedly discussed potential chip projects in the United Arab Emirates, which could be worth over $100 billion, according to the Wall Street Journal.
Top executives from TSMC recently visited the UAE and discussed the possibility of building a plant complex comparable to some of the company's largest and most advanced facilities in Taiwan, sources familiar with the matter told the WSJ.
Samsung Electronics, a major producer of smartphones, TVs, and memory chips, is also considering significant new chip-making operations in the country in the coming years, the paper reported.
TSMC informed Reuters that it has no new investment plans to announce. "We are always open to constructive discussions 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," the company stated in a recent statement without providing further details.
Samsung declined to comment on the WSJ report. Senior officials from Samsung Electronics reportedly visited the UAE recently and discussed the idea, though the WSJ noted that these discussions are still in their early stages and could face technical and other challenges.
Under the initial terms being discussed, the projects would be funded by the UAE, with a central role for Abu Dhabi-based sovereign development entity Mubadala, according to the WSJ. The broader objective would be to boost global chip production and help lower prices without compromising the profitability of chipmakers.
