WSJ: Samsung, TSMC considering new AI semiconductor factory in the UAE

Samsung and TSMC could establish new semiconductor factories in the UAE. The world’s leading chipmakers are considering new production facilities in the coming years to help satisfy soaring demand for artificial intelligence computing.

According to WSJ, Samsung sent emissaries to the UAE to discuss major new operations. TSMC also sent executives to talk about building a plant complex, rivaling its own production facilities in Taiwan.

The discussions are in the early phases, with no surety on panning out the project. Projects under consideration could cost more than $100 billion to complete. However, Samsung and TSMC may face many difficulties.

This input comes at a time when Samsung is facing various issues in the US. The company’s project in Taylor, Texas is delayed due to administrative and legal hurdles. The US Govt is also delaying subsidies, which TSMC commenced production.

TSMC said (via Bloomberg) that it is “focused on existing global expansions projects and it does not have new investment plans to disclose at this time”. The Taiwanese chipmaker is building new facilities in the US, Japan, and Germany at the moment.

Meanwhile, the UAE is angling to become a regional hub and testing ground for AI.