TSMC, Samsung discuss building chip factories in UAE: WSJ

Investing.com -- Samsung Electronics (KS:005930 ) and Taiwan Semiconductor Manufacturing Co., (NYSE:TSM ), widely known as TSMC, have engaged in talks about constructing large semiconductor plants in the United Arab Emirates, The Wall Street Journal reported on Sunday. 

These potential facilities could boost the region’s role in the growth of artificial intelligence.

Top executives from TSMC, the world’s leading chipmaker, recently visited the U.A.E. to discuss the possibility of building a manufacturing complex comparable in scale to its most advanced facilities in Taiwan, the report said. 

Similarly, senior leaders from South Korea's Samsung have explored establishing major chip production operations in the country.

Though still in the early stages, the discussions face several challenges, including technical factors, and may not lead to actual construction. The report added that the combined cost of the factories could top $100 billion. 

The projects would likely be backed by funding from the U.A.E. and its sovereign wealth fund, Mubadala, as part of a broader strategy to develop a domestic tech industry.

Source: Investing.com