Samsung and TSMC discuss setting up chip factories in the UAE
Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung Electronics have discussed building new large factories in the United Arab Emirates in the coming years, the Wall Street Journal reported .
The two companies seek to make this project benefit from the current boom in artificial intelligence technologies, and to succeed in attracting investments in the Middle East region.
According to the newspaper, executives from TSMC, the world's largest chipmaker, recently visited the UAE to discuss building an industrial complex that could rival the company's advanced facilities in Taiwan, according to people familiar with the talks.
The newspaper also noted that South Korean company Samsung has also recently sent envoys to the UAE to explore the possibility of setting up major industrial operations there, according to other sources familiar with the company's strategy.
Those talks appear to be going on separately, because both companies compete in the chipmaking market with their own factories and different customers.
The newspaper explained that these discussions are still in their early stages, and may not result in tangible projects due to the technical challenges they may face.
The newspaper added that the proposed projects may require investments exceeding $100 billion to complete.
It is worth noting that the Taiwanese company TSMC is currently expanding the establishment of advanced electronic chip factories in the United States with the support of the US government, and with extensive facilities supported by the “Chips and Science” Act, which aims to localize the chip industry in the United States.
Taiwanese company TSMC dominates the global chip manufacturing industry, accounting for more than 50% of the market alone. It is the leading manufacturer of advanced chips, including 3-nanometer chips used in many modern devices such as the new iPhones.
Samsung is the second largest company in the chip production market, and currently holds 17% of the global market in this sector.