According to a September 22 report by The Wall Street Journal, semiconductor giants TSMC and Samsung are exploring the possibility of constructing large-scale wafer fabs in the United Arab Emirates (UAE). The ambitious project would form part of a cutting-edge semiconductor manufacturing complex, with total costs potentially exceeding $100 billion.
The UAE government is expected to fund the initiative, with Mubadala, the country's sovereign wealth fund, playing a central role. This move aligns with the UAE’s strategic vision to diversify its economy by investing in advanced technology industries, reducing its dependence on oil revenues.
By attracting TSMC and Samsung, the UAE aims to bolster global semiconductor production capacity, which could help ease supply constraints and lower chip prices—without cutting into manufacturers' profits. Mubadala has previous experience in the chip industry, having acquired GlobalFoundries in 2008. Discussions about setting up a fab in the UAE took place back then, but the plans never materialized.
Now, with the global demand for semiconductors continuing to rise, the idea has gained fresh momentum. If successful, this development could significantly impact the global semiconductor landscape, ensuring more supply and fostering technological advancement in the region.
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