According to The Wall Street Journal, the world's two largest chip manufacturers, Taiwan Semiconductor and Samsung Electronics, may be discussing the construction of chip projects in the United Arab Emirates in the coming years, with a project value potentially exceeding $100 billion.

Executives from Taiwan Semiconductor and Samsung recently visited the United Arab Emirates.

According to insiders, $Taiwan Semiconductor (TSM.US)$Executives recently visited the United Arab Emirates and discussed the construction of a factory complex equivalent to their largest and most advanced factory in Taiwan.

In addition, $Samsung Electronics Co., Ltd. (SSNLF.US)$Also considering launching new large-scale chip manufacturing business in the United Arab Emirates. It is reported that senior executives from Samsung Electronics visited the United Arab Emirates recently to discuss major new businesses in the country.

According to reports, the scale of the projects being considered by these two semiconductor giants may require over $100 billion to complete. However, the discussions are still in the early stages and may encounter technical obstacles.

According to the preliminary terms being discussed, these projects will be funded by the United Arab Emirates, and Abu Dhabi's sovereign investor Mubadala will play a core role.

The United Arab Emirates is striving to establish a global AI center.

It is reported that the construction goal for the discussed chip project is to increase global chip production and help reduce chip prices without compromising the profitability of chip manufacturers.

At the same time, the United Arab Emirates is also striving to become a regional center and testing ground for artificial intelligence. More broadly, Gulf countries have been making efforts in recent years to transform towards technology to reduce their reliance on petrochemical products.

For example, there have been reports that the United Arab Emirates may be preparing to heavily invest in OpenAI to support a ambitious plan by the company's CEO, Sam Altman, to expand the application of AI technology to more machines and systems.

Over the past decade, Gulf countries have viewed the semiconductor industry as a growth opportunity. However, these efforts have previously been very challenging, partially due to the lack of infrastructure required to build chip factories in the Gulf region.

Generally speaking, the construction and equipment costs of chip factories and infrastructure can reach billions of dollars, and if they are not updated in a timely manner, they will quickly become outdated. This cooperation negotiation with Samsung and Taiwan Semiconductor may be aimed at solving this constraint.

Editor/ping