TSMC, Samsung reportedly consider building huge chip factories in UAE

By Mike Murphy

Chip-making titans Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. are considering building major factories in the United Arab Emirates to help fill future demand for artificial-intelligence chips, the Wall Street Journal reported Sunday.

Representatives of TSMC (TW:2330) (TSM) and Samsung (KR:005930) have both visited the UAE recently to discuss building advanced manufacturing facilities in the coming years, according to the Journal.

According to the Journal, plans for the projects are in the early stages and face significant hurdles, and may not come to fruition. The Journal said the combined cost of the factories could top $100 billion.

Also read: Nvidia's stock has room to run - but analysts see more upside for 6 other chip makers

When asked to comment on the Journal report, a TSMC spokesperson said: "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." Samsung did not immediately respond when asked to comment.

The projects would be funded by the UAE and its Abu Dhabi-based sovereign investment fund Mubadala, the Journal reported, as part of an effort to develop a domestic tech industry.

More broadly, the intent of the chip plants would be to increase global production and help bring down prices for the semiconductors that power AI servers.

-Mike Murphy

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

09-22-24 2151ET

Copyright (c) 2024 Dow Jones & Company, Inc.