Taiwan Semiconductor Manufacturing Company (TSMC) is currently considering the possibility of establishing a state-of-the-art manufacturing facility in the United Arab Emirates (UAE), according to a report by Bloomberg.
This potential development is in line with TSMC’s strategy for global expansion, as the company is engaging in discussions with US representatives, including Steve Witkoff, the US special envoy to the Middle East, as per information from insiders.
Additionally, TSMC has reportedly met multiple times with officials from the investment organization MGX.
The envisaged project would entail a substantial investment in a gigafab, comprising a group of six factories analogous to TSMC’s existing plant in Arizona.
While the exact financial requirements for the UAE facility are not yet known, TSMC’s undertaking in Phoenix, Arizona, is backed by a $165 billion investment, which includes research and packaging capabilities.
The timeline for establishing the facility in the UAE remains ambiguous, with the construction phase possibly being several years away, the report indicates.
TSMC’s advancement in this venture is contingent upon receiving support from the US, where some officials have voiced concerns regarding national security and economic impacts.
Collaboration between TSMC and the US government dates back to the Trump administration’s era, particularly in connection with the Arizona project, which was allocated $6.6 billion in federal funding.
TSMC manufactures chips for companies such as Nvidia and Advanced Micro Devices, which are crucial for electronic devices and artificial intelligence systems.
Initially, TSMC operated primarily in Taiwan, but it has since expanded to locations in Japan, Germany, and the US to address supply chain and geopolitical challenges.
Despite the UAE currently not having an adequate skilled workforce for such a facility, it does provide plentiful land, energy resources, and financial investment potential.
Executives from TSMC visited the UAE last year to study the viability of establishing factories in the region.
In May 2025, TSMC announced the upcoming launch of a chip design center in Munich, Germany, which is expected to facilitate the creation of advanced chips for uses such as artificial intelligence applications.
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