High-level executives from TSMC and Samsung recently traveled to the United Arab Emirates (UAE) to discuss the possibility of setting up a chip manufacturing plant in the region. Both companies are interested in building a large-scale production facility alongside their existing plants.
Details of the discussions have not been disclosed, but it is expected that the UAE will provide financial backing for the construction of the plant through the country’s wealth fund, Mubadala. Mubadala is known for investing heavily in technology-related industries, with chip manufacturing being a key focus.
A representative from Mubadala stated to The Wall Street Journal that the organization regularly engages in discussions for investments with partners worldwide.
However, one of the challenges of setting up a manufacturing plant in the UAE is the high demand for clean water. Currently, water in the UAE is desalinated from seawater. Additionally, there is a lack of supply chain in the electronics manufacturing industry related to chip production in the surrounding area.
TLDR: Executives from TSMC and Samsung are exploring the possibility of establishing a chip manufacturing plant in the UAE, with financial support expected from Mubadala, the country’s wealth fund. Challenges include the need for clean water and a lack of supply chain in the electronics industry.
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