The global semiconductor landscape is poised for a significant shift as two of the world’s leading chip manufacturers, TSMC and Samsung Electronics, are reportedly in talks to establish major chip manufacturing facilities in the United Arab Emirates (UAE). These ventures, estimated to exceed $100 billion in investment, represent a major strategic move that could have far-reaching implications.
According to reports, top executives from both companies have recently visited the UAE to assess the feasibility of these ambitious projects. Taiwanese chip giant TSMC is considering developing a plant complex in the UAE, potentially rivaling some of its most advanced facilities in Taiwan. While TSMC has maintained a cautious stance, emphasizing its focus on existing global expansion projects, the discussions signal the seriousness of its potential investment in the region.
Meanwhile, South Korea’s Samsung Electronics is also planning to set up major new chip-making operations in the UAE. Known for its production of smartphones, televisions, and memory chips, Samsung’s interest in the UAE is a significant step in its global expansion strategy.
The discussions with the UAE government are still in their early stages, but it is believed that any potential projects would be funded by the UAE government, with Abu Dhabi-based sovereign wealth fund Mubadala playing a central role. These initiatives aim to increase global semiconductor production capacity, potentially leading to lower chip prices without compromising the profitability of chipmakers.
However, these developments have also caught the attention of Washington. Concerns have been raised about the possibility of advanced US AI technology reaching China through intermediaries in the Middle East. As tech-related deals in the region accelerate, the geopolitical implications of such investments are becoming increasingly complex, adding another layer to the ongoing semiconductor rivalry between the US and China.
