Two of the biggest chipmakers in the world, TSMC and Samsung Electronics, have talked about developing possible chip projects in the United Arab Emirates in the upcoming years that might be valued at over $100 billion, according to a Wall Street Journal report.
TakeAway Points:
- TSMC and Samsung Electronics, two of the biggest chipmakers in the world, have talked about developing possible chip projects in the United Arab Emirates in the upcoming years that could be valued at over $100 billion.
- TSMC said it had no new investment plans to announce.
- South Korean electronic manufacturer Samsung Display Co. plans to invest $1.8 billion for a factory this year in northern Vietnam to produce OLED displays for automobiles and technology equipment.
Chip Factories in UAE
The report added that the broader goal would be to increase global chip production and help bring prices down without hurting chipmakers’ profitability.
Top executives at TSMC have visited the UAE recently and talked about a plant complex on par with some of the company’s largest and most advanced facilities in Taiwan, the WSJ said, citing people familiar with the interactions.
South Korea-based Samsung Electronics, a maker of smartphones, TVs, and memory chips, is also considering major new chip-making operations in the country in the years ahead, the paper said.
Meanwhile, TSMC said it had no new investment plans to announce.
“We are always open to constructive discussion on ways to promote development of the semiconductor industry, but we remain focused on our current global expansion projects and have no new investment plans to disclose at this time,” it said in a statement on Monday.
Senior figures at Samsung Electronics visited the UAE recently and discussed the idea, WSJ reported, adding that the discussions were still in the early phases and may face technical and other hurdles.
Under initial terms being discussed, the projects would be funded by the UAE, with a central role for Abu Dhabi-based sovereign development vehicle Mubadala, according to WSJ.
The paper added that the broader goal would be to increase global chip production and help bring prices down without hurting chipmakers’ profitability.
As tech deals in the region speed up, Washington has become increasingly concerned about the UAE and other Middle Eastern countries becoming a conduit for advanced U.S. AI technology reaching China.
Samsung increases its investment in Vietnam for OLED manufacturing plant
Vietnam announced on Sunday that South Korean electronics firm Samsung Display Co. would invest $1.8 billion to build an OLED display facility in the country’s north this year, producing screens for cars and other technology equipment.
The new facility for the manufacture of organic light-emitting diode (OLED) displays will be located in Yen Phong industrial park in Bac Ninh province east of Hanoi and close to an existing Samsung electronics plant, the government said in a statement released after the meeting between Prime Minister Pham Minh Chinh and the General Director of Samsung Vietnam, Choi Joo Ho.
Bac Ninh authorities and Samsung Display on Sunday also signed a memorandum of understanding of the project, local media reported, adding the investment would raise Samsung’s total investment in Bac Ninh to $8.3 billion from the current $6.5 billion.
Vietnam has over the last decade emerged as one of the most attractive production hubs for electronics companies.
According to Choi, Samsung has established six manufacturing plants, one research and development centre, and one sales entity in Vietnam, with a cumulative investment of $22.4 billion.
