Samsung and TSMC Eye UAE in $100 Billion Chip Venture Ambition

Samsung Electronics and TSMC, two of the largest chip manufacturers globally, are reportedly considering a joint venture in the UAE. This ambitious project, potentially exceeding a valuation of $100 billion, would involve constructing major chip plants similar in scope to TSMC’s most advanced facilities in Taiwan.

Executives from both companies have recently visited the UAE to discuss these prospective developments. TSMC representatives explored the possibility of establishing a facility rivaling their leading site, while Samsung's leadership also evaluated extensive chip manufacturing operations in the nation. These discussions, although preliminary, anticipate substantial investment and could face technological and logistical challenges.

The projects may be primarily financed by the UAE, with significant involvement from Mubadala, Abu Dhabi’s sovereign investment entity. The overarching aim of these initiatives is to bolster global chip supply while maintaining profitability for semiconductor producers, thus potentially driving down chip costs.

This development aligns with the UAE’s strategic objective to transform into a regional hub for artificial intelligence and a broader technological shift. Historically reliant on petrochemicals, Gulf countries are actively diversifying their economies, emphasizing sectors like technology.

Efforts to invest in the semiconductor industry have previously been encumbered by regional infrastructure constraints. However, the potential collaboration with giants such as Samsung and TSMC may signify a pivotal shift, enabling the Gulf state to overcome past hurdles and meet its technological ambitions.