According to the Wall Street Journal, two of the world’s largest semiconductor manufacturers, TSMC and Samsung Electronics, are exploring the possibility of building semiconductor factories in the United Arab Emirates.
The two companies are reportedly in talks about a potential manufacturing project in the UAE that could be worth more than $100 billion, with top TSMC executives visiting the Middle East recently.
The Journal, citing people familiar with the matter, claimed the two men discussed a complex of factories that would rival the company’s largest, most advanced facilities in Taiwan.
South Korea’s Samsung Electronics, a maker of smartphones, televisions and memory chips, is also considering setting up a new large-scale chip manufacturing operation in the country in the next few years, the paper said.
TSMC told Reuters it had no new investment plans to announce.
As AF also reports, the US plans to ban vehicles equipped with Chinese technology from American roads.
“While we always welcome constructive discussions on ways to promote the development of the semiconductor industry, we remain focused on our current global expansion projects and have no new investment plans to announce at this time,” the company said in a statement on Monday, without providing details.
Samsung declined to comment on the WSJ report.
Samsung Electronics executives recently visited the UAE to discuss the initiative, the Journal reported, but added that the talks were still in their early stages and could face technical and other obstacles.
According to the WSJ, initial terms of the talks would see the project funded by the UAE, with Abu Dhabi-based government development agency Mubadala playing a leading role.
The broader goal is to increase global semiconductor production and help lower prices without hurting chipmakers’ profitability, the paper added.
As tech trade accelerates in the region, Washington has become increasingly concerned that the UAE and other Middle Eastern countries could become a conduit for advanced U.S. AI technology to reach China.
Additional editing by Sean O’Meara, Reuters
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Sean O’Meara
Sean O’Meara is the Editor of Asia Financial. A newspaper journalist for over 30 years, he has worked as a writer, sub-editor, page designer and print editor for local, regional and national newspapers in the UK. He is a football, cricket and rugby fan, with a particular interest in sports finance.