Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Electronics Co. are reportedly exploring plans to establish large semiconductor factories in the United Arab Emirates (UAE) to address the rising global demand for artificial intelligence (AI) computing. According to the Wall Street Journal, both tech giants have initiated talks about major new operations in the Middle Eastern nation.
Samsung has already dispatched representatives to the UAE to discuss the potential for these large-scale projects, sources familiar with the company’s strategy revealed. However, the discussions are still in the early stages, and the ambitious plans could face numerous technical and logistical challenges, making it uncertain if they will move forward.
The potential cost of these projects is substantial, with estimates suggesting it could exceed $100 billion, given the size and complexity of the factories under consideration.
UAE’s Growing Role in AI and Technology
The UAE is positioning itself as a hub for technological advancements and artificial intelligence, aiming to play a crucial role in the development and application of AI technologies. The country is considering supporting an expansive vision proposed by OpenAI CEO Sam Altman, which seeks to scale up the machinery and systems needed to power AI.
With TSMC and Samsung exploring the possibility of building semiconductor plants in the UAE, this aligns with the country’s ambitions to become a regional leader in cutting-edge technology.
