The Dubai International Financial Centre (DIFC) in Dubai, United Arab Emirates, with Burj Khalifa in the background, September 16, 2022.
Christopher Pike | Bloomberg | Getty Images
Global chip giants Taiwan Semiconductor Manufacturing Co. And Samsung Electronics The Wall Street Journal reported on Sunday, citing people familiar with the interactions and strategies involved, that China is in talks with the United Arab Emirates about building mega factories in the Middle East.
Top TSMC executives recently visited the Gulf state to discuss plans to build factory complexes comparable to some of the company’s largest and most modern facilities in Taiwan, the report said.
South Korean company Samsung Electronics is also considering investing in building chip manufacturing plants in the country in the coming years. Senior executives of the South Korean company recently visited the country to explore the idea, the report said.
The Gulf state has increased its efforts and investments in developing its domestic technology industry to strengthen its position as a global center for high technology and artificial intelligence, but talks with UAE officials are still in the early stages, the report said.
A tug-of-war is raging in the region between the US and China as tech deals accelerate and Washington becomes increasingly concerned about Beijing’s influence in the Gulf state. TSMC and Samsung have held talks with US officials concerned about potential shipments of advanced AI chips from UAE factories to China.
The US will likely continue to pressure the UAE not to cooperate with China “since these factories would produce advanced AI-related chips,” Alex Capri, a lecturer at the National University of Singapore’s business school, told CNBC.
You can read the full Wall Street Journal report here.
