TSMC considers establishing advanced chip plant in the UAE - Bloomberg

Published 30/05/2025, 19:58
© Reuters.

Investing.com -- Taiwan Semiconductor Manufacturing Co. (TSMC) is considering the construction of an advanced production facility in the United Arab Emirates (UAE), a decision that would require Washington’s approval, according to Bloomberg, citing insiders.

The semiconductor manufacturer has been in discussion with Steve Witkoff, the US special envoy to the Middle East, and officials from MGX, an investment vehicle overseen by the UAE president’s brother. These discussions are a continuation of talks initiated during President Joe Biden’s administration, which had paused by the end of his term.

The proposed project is a significant investment in a gigafab, a complex of six factories similar to the one TSMC is building in Arizona. The total cost for a facility in the UAE is yet to be determined. TSMC has allocated $165 billion for its Phoenix project, which includes research and packaging facilities.

The timeline for the potential UAE site is uncertain, with insiders suggesting that groundbreaking could be several years away. The decision to proceed is dependent on approval from Washington. Some senior officials from the Trump administration have expressed concerns about the national security and economic implications of the world’s leading chip manufacturer expanding to the Gulf.

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