TSMC, Samsung explore major AI chip factories in UAE

Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Electronics Co. are in talks to establish major new factories in the United Arab Emirates (UAE) in the coming years to meet the increasing demand for artificial intelligence computing, according to a Wall Street Journal report.

The report states that executives from TSMC, the world's leading chipmaker, have recently visited the UAE to explore the possibility of building a plant complex that could rival its advanced facilities in Taiwan.

Similarly, representatives from South Korea’s Samsung have also visited the UAE to discuss potential large-scale operations, according to separate sources familiar with the company’s plans.

These discussions are still in the early stages and the proposed projects could cost over $100 billion to complete, the report added.

Samsung declined to comment on the matter in WSJ's report, while TSMC stated that it is currently focused on its ongoing global expansion projects in the US, Japan, and Germany and does not have any new investment plans to disclose at this time.

The UAE aims to position itself as a regional hub and testing ground for artificial intelligence, including supporting an ambitious plan by OpenAI CEO Sam Altman to expand AI infrastructure and capabilities.

Gulf states, in general, have been seeking to diversify their economies away from petrochemicals, eyeing the semiconductor industry as a growth area for over a decade.

G42, an Abu Dhabi-based company, is at the forefront of the UAE’s push into AI. Earlier this year, it secured a $1.5 billion investment from Microsoft Corp., with plans to establish two centers in the UAE to develop AI industry standards.

G42 has also announced a partnership with Nvidia Corp. to create a climate technology lab and has an existing collaboration with OpenAI, the creator of ChatGPT.