The Taiwan Semiconductor Manufacturing Company (TSMC) has no intention of setting up a factory in the Middle East, according to CEO CC Wei.
Reports indicate that the Taiwanese firm has conducted several discussions with Steve Witkoff, the US special envoy to the Middle East, alongside officials from Abu Dhabi’s MGX, about potential factory operations in the UAE.
Nonetheless, Wei clarified during TSMC’s recent annual shareholders meeting that there are currently no plans for a plant in the area, primarily due to concerns regarding the ability to secure enough customers in the region, as reported by Reuters.
On a broader scale, Wei noted that the demand for artificial intelligence (AI) is significantly high and continues to exceed supply, despite some impact from US tariffs on the company’s operations.
“Tariffs can drive prices slightly higher, and with increasing prices, demand might decrease,” Wei stated, and mentioned that these matters have been addressed with Washington.
Previously, it was reported that TSMC and Samsung Electronics were considering the establishment of large-scale manufacturing sites in the UAE.
In May, discussions between the US and UAE led to the announcement of a 10-square-mile AI campus development in Abu Dhabi, during a meeting between US President Donald Trump and UAE President Sheikh Mohamed bin Zayed Al Nahyan.