Major Asian Chip Manufacturers Considering New Factory in UAE, Report Says

Taiwan Semiconductor Manufacturing Company (TSMC) and South Korea-based Samsung are exploring opportunities to establish chip manufacturing projects in the United Arab Emirates, according to a Wall Street Journal report published on Sunday.  

Executives from both companies reportedly visited the UAE in recent weeks to take part in early-stage discussions about the potential projects.  

The contract, which if secured would likely be worth upwards of $100 million, would be a massive boon for the Gulf nation, which has aggressively pursued foreign investment for its budding high-tech sector in recent years. 

According to sources cited by the Wall Street Journal report, the plans discussed by TMSC’s representatives on the trip would entail the construction of a facility comparable to even their most advanced plants in Taiwan.  

TSMC told Reuters that while it has no new major projects to announce at this time, it was always looking for new avenues to expand.  

“We are always open to constructive discussion on ways to promote 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 said in a brief statement on Monday.  

Samsung declined to comment on Sunday’s report.  

Based on the early discussions, both the Emirati government and Abu Dhabi’s sovereign development firm, Mubadala Development Company, would play key roles in the projects, according to the Wall Street Journal.