TSMC and Samsung are considering building large chip factories in the United Arab Emirates, WSJ reports from Reuters

(Reuters) – Two of the world’s biggest chipmakers, TSMC and Samsung Electronics ( KS: ), have discussed building potential chip projects in the United Arab Emirates in the coming years, which could be worth more than $100 billion, the Wall Street Journal reported on Sunday. .

Top executives from TSMC recently visited the United Arab Emirates and talked about a factory complex on par with some of the company’s largest and most advanced facilities in Taiwan, the WSJ said, citing people familiar with the interactions.

South Korea-based Samsung Electronics, the maker of smartphones, TVs and memory chips, is also considering major new chip-making operations in the country in the coming years, the paper said, citing unnamed sources.

TSMC and Samsung did not immediately respond to a Reuters request for comment.

Senior officials from Samsung Electronics recently visited the United Arab Emirates and discussed the idea, the WSJ reported, adding that talks are still in the early stages and could face technical and other hurdles.

Under the initial terms under discussion, the projects would be financed by the United Arab Emirates, with a central role for Abu Dhabi’s sovereign development vehicle, Mubadala, according to the WSJ.

The paper added that the broader goal would be to increase global chip production and help lower prices without hurting chipmakers’ profitability.

As the region’s tech offerings accelerate, Washington has grown increasingly concerned that the United Arab Emirates and other Middle Eastern countries are becoming a conduit for advanced US AI technology reaching China.