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chip manufacturing

Is TSMC Building a Chip Plant in the UAE? What the Reports Say

Reports describe TSMC discussions and evaluation of a possible UAE facility—not a confirmed chip plant. Here is what is known about cost, approval and the UAE’s semiconductor ambitions.

By TheFinanceBase Team 3 min read
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No public announcement shows that TSMC is building a chip plant in the UAE. Reporting in 2024 and 2025 described discussions and evaluation of a possible facility, not a final investment decision. There is no established UAE project cost, site, process node, construction schedule or production date.

What has TSMC actually said about a UAE plant?

In September 2024, TSMC said it was open to constructive discussion about developing the semiconductor industry but remained focused on its existing global expansion projects and had “no new investment plans to disclose at this time.” Reuters quoted the statement in reporting carried by Taipei Times.

That response came after Reuters reported that senior TSMC executives had visited the UAE and discussed a possible plant complex comparable to advanced facilities in Taiwan. Reuters described the talks as early and subject to technical and other hurdles. These were reported discussions, not a TSMC announcement that it had selected a site or approved construction.

Bloomberg reported on May 30, 2025, that TSMC was evaluating an advanced production facility in the UAE and that discussions had involved US officials and MGX. Citing people familiar with the matter, Bloomberg said the project would require Washington’s approval. That reporting indicates evaluation, not a confirmed project or government authorization.

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Where the reported UAE proposal stands

Question What is established
Announcement status Reported talks and evaluation; no public TSMC final investment decision.
Cost Reuters relayed a Wall Street Journal report that early potential UAE projects involving TSMC and Samsung could exceed US$100 billion. This was a reported figure for possible projects, not a committed TSMC UAE budget.
Site, fab count and process node Not stated in the cited reporting.
Construction or production dates Not stated in the cited reporting.
Funding Reuters reported that Mubadala was expected to play a central funding role in the proposed projects; that does not establish a signed financing commitment.
Regulatory dependency Bloomberg reported that Washington approval would be needed for the project to proceed.

Why is the UAE pursuing semiconductor manufacturing?

Abu Dhabi’s Department of Economic Development describes an effort to attract semiconductor companies and develop a capital-intensive, manufacturing-driven cluster. Its stated advantages and priorities include the UAE’s strategic location, infrastructure, talent development and Mubadala Technology’s semiconductor research-and-development ecosystem.

That policy agenda helps explain why a large foundry project could be of interest to the UAE, but it does not show that TSMC has committed to participate. An advanced fab also depends on more than investment: technical feasibility, infrastructure, water, skilled workers and a dependable supply chain all matter. The cited reports identify technical hurdles, while Abu Dhabi’s public policy description emphasizes infrastructure and talent development.

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How does the UAE possibility compare with TSMC’s announced expansion?

TSMC’s disclosures provide a useful contrast between a reported possibility and announced investment. On March 4, 2025, the company announced an additional US$100 billion of planned investment in the United States, bringing its planned US investment to US$165 billion for three fabs, two advanced-packaging facilities and an R&D center.

Comparison UAE possibility Announced US expansion
Status Reported discussions and evaluation; no public final investment decision. TSMC-announced planned investment.
Investment figure More than US$100 billion was reported for early potential UAE projects involving TSMC and Samsung; no committed TSMC UAE amount is established. US$165 billion total planned US investment, including the additional US$100 billion announced March 4, 2025.
Facilities described Not stated in the cited reporting. Three fabs, two advanced-packaging facilities and an R&D center.
Regulatory dependency Bloomberg reported that Washington approval would be required. Not specified in the cited announcement.
Production timetable Not stated in the cited reporting. Not stated in the cited announcement.

TSMC’s 2025 annual report says its managed manufacturing capacity exceeded 17 million 12-inch-equivalent wafers in 2025 and lists facilities in Taiwan, Arizona, Japan and Germany. It does not list a UAE fab or UAE investment. That disclosure describes the company’s reported facilities and capacity for 2025; it does not rule out later plans.

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What would a UAE fab mean for chip supply?

If a UAE facility were ultimately approved, funded, built and brought into production, it could add manufacturing capacity outside TSMC’s existing listed locations. But the public information does not establish a production start date, capacity, technology node or product mix. Without those details, it is not possible to estimate how much the facility would affect global supply or when customers might receive chips from it.

The near-term significance is therefore the possibility of a new location, not a measurable addition to current chip output. Any conclusion about future supply depends on decisions and details that have not been publicly established.

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