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TSMC and Samsung Consider Establishing Large Chip Factories in UAE, Reports WSJ via Reuters

Two of the world’s largest chipmakers, TSMC and Samsung Electronics, are in discussions about potential chip projects in the United Arab Emirates that could exceed $100 billion, according to a report from the Wall Street Journal.

Top executives from TSMC recently visited the UAE to explore the possibility of establishing a complex similar to some of their most advanced facilities in Taiwan. Meanwhile, Samsung Electronics, which manufactures smartphones, TVs, and memory chips, is also considering significant new chip-making operations in the region in the coming years.

Although TSMC and Samsung have yet to respond to requests for comments, reports indicate that senior figures from Samsung discussed these ideas during their recent visit to the UAE. The discussions are still in the preliminary stages and may encounter technical and logistical challenges.

Initial terms suggest that the projects would be financed by the UAE, with significant involvement from Abu Dhabi-based sovereign development vehicle Mubadala. The overarching goal of these initiatives would be to boost global chip production and reduce prices without compromising the profitability of chipmakers.

As investments in technology in the region accelerate, there is growing concern in Washington that the UAE and other Middle Eastern countries may become pathways for advanced U.S. AI technology to reach China.

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