On Sunday, Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung were reportedly in talks for possible chip factories in the United Arab Emirates (UAE).
According to reports, their plan supports the demand boost of artificial intelligence computing. Furthermore, projects of the magnitude being considered could exceed $100.00 billion in completion costs.
Meanwhile, TSMC executives have reportedly visited the UAE to consider building a plant complex that may compete with the firm’s advanced factories in Taiwan.
In addition, Samsung recently dispatched representatives to the Middle East to discuss plans for significant new regional operations. However, sources noted that the talks remain in the early phases and will likely face technical and other challenges.
On the other hand, in an emailed statement, TSMC stated that it is currently concentrated on its global expansion projects and has no new investment plans to announce. The Taiwanese chipmaker is constructing new facilities in the US, Japan, and Germany.
According to the reports, initial discussions suggest that the UAE would fund the projects, with Abu Dhabi-based sovereign development vehicle Mubadala playing a pivotal role.
The sources also noted that the broader aim is to boost global chip production and help lower prices without compromising chipmakers’ profitability.
Samsung’s Memory, Smartphone Divisions to Partner with TSMC
Samsung’s memory and smartphone divisions have reportedly discussed collaborating with Taiwanese companies like TSMC and MediaTek.
According to reports, the South Korea-based firm has failed forecasts, with its foundry and memory sectors facing tight rivalry with TSMC and SK Hynix.
Additionally, the green line issue has troubled Samsung’s smartphone business. To turn things around, the company is seeking collaboration with Taiwanese manufacturers.
Meanwhile, amid the output concerns with the Exynos 2500, it remains uncertain whether the chip will power the tech giant’s smartphones.
Furthermore, Samsung is reportedly negotiating with MediaTek to use Dimensity chips alongside Qualcomm in next year’s S-series phones.
