Samsung, TSMC are said to weigh Middle East megafactories

Samsung Electronics (OTCPK:SSNLF) and Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) (OTC:TSMWF), better known as TSMC, have discussed the possibility of building giant factories in the United Arab Emirates that would transform the region for growth in artificial intelligence, The Wall Street Journal reported Sunday, citing people familiar with the matter.

Top executives from TSMC (TSM) (OTC:TSMWF), the world's biggest chip maker, visited the U.A.E. recently for talks about a plant complex matching the scale of some of its biggest and most advanced facilities in Taiwan.

South Korea’s Samsung Electronics (OTCPK:SSNLF) also is weighing major new chip-making operations in the country. Senior leaders of the electronics giant visited the U.A.E. recently and discussed the possibility, the Journal reported, citing its sources.

The discussions are in the early stage and may not result in anything getting built because of various hurdles including technical considerations. The projects would receive financing from the U.A.E. and its sovereign asset manager Mubadala, which aims to develop a domestic tech industry.