Taiwan Semiconductor Manufacturing Co. (TSMC), arguably the biggest name in chip manufacturing, is apparently considering investing in a state-of-the-art manufacturing facility in the United Arab Emirates, according to sources familiar with the negotiations. However, such a significant move into the Middle East will likely depend primarily on Washington's nod.
Word on the street is that TSMC officials have been having high-powered conversations over the last few months, including one with Steve Witkoff, the U.S. special envoy to the Middle East, and officials associated with MGX. This investment group is managed largely under the aegis of the UAE president's brother.
Interestingly, the discussions have a long history. They have reportedly been rekindled from talks that were originally initiated during President Joe Biden's tenure but went quiet towards the end of his term.
The idea of TSMC pouring such a large potential strategic investment into the UAE in the direction of an advanced facility is, however, heavily contingent on US approval. The sensitive geopolitical and technological implications mean that such a project would need careful consideration and backing from Washington in order to be realized.
And as the situation continues evolving, it remains to be seen whether the exploratory discussions lead to a full-fledged plan. For the time being, it signals an increasing interest in action toward diversifying global chip manufacturing locations.
