TSMC and Samsung Eye UAE for Potential AI Chip Factories

Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Electronics Co. are in early discussions to potentially build major chip factories in the United Arab Emirates (UAE). The move aims to meet the growing demand for AI computing chips. While executives from both companies have visited the UAE, the projects are uncertain and face significant technical and financial challenges. Each project could cost over $100 billion. TSMC stated they are currently focused on existing expansion plans and have no new investments to announce. The UAE is striving to become a regional AI hub and reduce its dependence on petrochemicals. However, previous efforts to establish a chip industry in the Gulf region have faced obstacles due to a lack of infrastructure and skilled labor.