TSMC and Samsung are in early discussions about building major semiconductor manufacturing plants in the UAE. These projects could potentially be worth over $100 billion. Both companies are exploring the idea of establishing facilities on a scale similar to their largest operations in Taiwan. Key UAE entities, particularly the Abu Dhabi-based Mubadala investment group, are expected to play a central role in financing and facilitating these ventures.
The goal behind these potential megafactories is to boost global chip production, reducing costs while maintaining profitability for the manufacturers. However, there are still various technical and logistical challenges to address. Additionally, geopolitical concerns, particularly related to U.S. tech exports and the risk of advanced technology reaching China, are also in play as these deals progress.
These plans reflect the Middle East’s growing interest in high-tech industries, alongside its existing energy and finance sectors, as countries like the UAE diversify their economies​
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