TSMC Engages with U.S. Officials to Explore New Manufacturing Hub in the UAE

According to a recent report from Bloomberg, Taiwan Semiconductor Manufacturing Co (TSMC) is currently engaging in discussions with officials from the Trump administration regarding the establishment of a cutting-edge chip manufacturing facility in the United Arab Emirates (UAE). This initiative aligns with TSMC’s broader strategy to diversify its production locations and mitigate risks associated with concentrating too much manufacturing in one region.

Sources indicate that TSMC has held several meetings over recent months with Steve Witkoff, the US Special Envoy to the Middle East, as well as representatives from MGX, an investment firm closely tied to UAE leadership. While these conversations reportedly began during Biden’s presidency, they have gained momentum under Trump’s administration.

The proposed facility would resemble TSMC’s enterprising $165 billion plant in Arizona, which features multiple factories along with research and packaging capabilities. This Arizona site is pivotal for enhancing US semiconductor production following the enactment of the 2022 CHIPS and Science Act.However, any plans for a factory in the UAE would require approval from US authorities.Some officials within trump’s circle are expressing concerns about potential national security implications due to UAE’s relationships with China and Iran. They fear that geopolitical shifts could allow China access to technology produced at such a facility. Additionally, there are worries that diverting resources towards an overseas project might detract from TSMC’s investments back home in Arizona.

Workforce availability also poses challenges; currently,there aren’t enough skilled workers within the UAE capable of constructing or operating such advanced facilities. It’s likely that TSMC would need to recruit talent internationally to ensure successful operations.

While TSMC has chosen not to comment on these discussions—stating it prefers not to address market speculation—the White House and other involved parties have remained silent when approached for comments.

Establishing a factory in the UAE could represent significant progress for both TSMC and this Gulf nation as it invests heavily into artificial intelligence and data infrastructure. Nevertheless, experts suggest that if this project moves forward at all, it may take years before any groundbreaking occurs or tangible results emerge.