TSMC and Samsung Eye UAE for $100 Billion Chip Factory Expansion

In recent developments, TSMC (TSM.US) and Samsung Electronics (SSNLF.US), two of the world's largest chip manufacturers, are reportedly considering establishing new chip factories in the UAE. The potential projects, which could exceed $100 billion, reflect the companies' strategies to meet the rapidly growing demand for AI computation capabilities.

Sources indicate that TSMC executives have already visited the UAE to discuss plans for a complex comparable in scale to some of their largest and most advanced facilities in Taiwan. Meanwhile, Samsung also appears to be in the early stages of exploring a similar venture, despite potential technical and logistical challenges that could affect the feasibility of such a project.

According to preliminary discussions, these ambitious projects would be financially supported by the UAE, with Mubadala, the sovereign development fund based in Abu Dhabi, playing a pivotal role in funding and facilitating the initiatives.

The broader aim of these undertakings is to enhance global semiconductor production and help reduce chip prices without affecting the profitability of chip manufacturers. This could potentially bolster the worldwide supply chain and address current supply bottlenecks impacting various industries.