According to a Wall Street Journal report cited by Reuters, two of the world’s largest chipmakers, TSMC and Samsung Electronics, are examining possible semiconductor projects in the United Arab Emirates (UAE) that could be worth more than $100 billion over the next few years.
Top executives from TSMC visited the UAE to discuss building a cluster of chip factories to rival the company’s state-of-the-art facilities in Taiwan, the Journal reported, citing people familiar with the discussions.
South Korea’s Samsung Electronics is also considering a large-scale chip-making operation in the UAE, but talks are still in the early stages, according to anonymous sources told the Journal.
Senior Samsung executives recently visited the UAE to discuss the project, but the project is still in its early stages and could face technical and other challenges, the Journal noted.
TSMC and Samsung did not immediately respond to Reuters requests for comment.
The UAE will fund the projects, with Abu Dhabi’s sovereign wealth fund Mubadala playing a central role, the Journal said, adding that the broader aim is to boost global chip production and lower prices without cutting into chip makers’ profits.
As high-tech trade accelerates in the region, Washington is increasingly concerned that the UAE and other Middle Eastern countries could become a conduit for advanced U.S. AI technology to reach China.
Notably, the UAE has recently made great strides to establish itself as a major player in advanced technology: In March, the Financial Times reported that MGX, a newly formed AI investment firm in Abu Dhabi, had begun exploratory discussions with OpenAI about investing in a chip business, part of the UAE’s ambition to lead the world in AI development.
In February of this year, the WSJ reported that OpenAI CEO Sam Altman had met with investors in the UAE and elsewhere in the region to discuss significantly expanding production of chips, power and other key AI infrastructure, a move that could ultimately require up to $7 trillion in investment.
(Photo courtesy of TSMC)
Please note that this article cites information from The Wall Street Journal and Reuters.
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