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Global chip giants explore opening UAE factories

By Pramod Kumar
Visitors at the Taiwan Semiconductor Manufacturing Co museum in Taiwan. The proposed chip-making projects in the UAE could require more than $100 billion in investments Mehdi Chebil/Hans Lucas via Reuters Connect
Visitors at the Taiwan Semiconductor Manufacturing Co museum in Taiwan. The proposed chip-making projects in the UAE could require more than $100 billion in investments
  • TSMC and Samsung in talks
  • Advanced chip plant facilities
  • Could result in lower prices

Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Electronics, the world’s largest chip makers, are exploring the possibility of opening mega-manufacturing facilities in the UAE.

The terms of discussion include projects to be funded by the UAE, with Abu Dhabi-based sovereign Mubadala playing a key role, The Wall Street Journal reported, citing unnamed sources.

Executives from TSMC recently visited the UAE and discussed plans for a chip plant complex similar to its most advanced facilities in Taiwan, the report said.

Similarly, senior executives from Samsung talked about the potential of starting chip-making operations in the Gulf state.

The proposed projects in the UAE could involve mega complexes with multiple factories, requiring more than $100 billion investments.

However, these talks are still in the early stages and may face technical and logistical challenges that may hinder their execution.

The move could significantly boost global chip production and potentially lower chip prices without affecting chip-makers profitability, the newspaper said.

This month, MGX, a UAE technology investment company, said it would be part of a new $30 billion initiative to invest in building data centres and energy infrastructure.

In June, Sam Altman, CEO of ChatGPT’s developer OpenAI, praised the Emirates’ “desire, commitment and willingness” to explore the technology.

“I’m hopeful that the region can play a central role in this global conversation,” he said.

In December 2023, OpenAI held talks to raise funding for a new chip venture with Abu Dhabi-based G42, Bloomberg reported.

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