TSMC, Samsung Reportedly In Talks To Build Mega Chip Factories In UAE

(RTTNews) - Chip giants Taiwan Semiconductor Manufacturing Co Ltd. (TSM) and Samsung Electronics Co. (SMSN.L, SSNNF.OB, SSNLF.OB) have discussed about building major new factories in the United Arab Emirates in coming years to meet the soaring demand for artificial intelligence or AI computing, the Wall Street Journal reported citing people familiar with the interactions.

It is expected that the potential projects in the UAE could cost more than $100 billion.

Recently, key executives from TSMC, the world's largest chip maker, visited the UAE to talk about a plant complex. As per the report, South Korea's Samsung has also sent executives to the country to talk about the same purpose.

As per the WSJ, the discussions are in early stages and the projects could face major technical and other hurdles, and it may not be successful.

The proposed huge factory complexes in the country would become a cornerstone for AI investments in the Middle East.

The news comes as President Joe Biden is hosting UAE President Sheikh Mohamed bin Zayed Al Nahyan at the White House Monday. They are expected to discuss a number of matters, including deepening cooperation between the two countries such as advanced technology, artificial intelligence, investments, and space exploration.