Taiwan Semiconductor Manufacturing, or TSMC, (TPE:2330) is in early talks to build a major semiconductor facility in the United Arab Emirates, Bloomberg News reported Friday, citing people familiar with the matter.
The plan involves a potential multi-factory "gigafab" similar to the chip maker's $165 billion Arizona site, subject to approval from the U.S. government.
Discussions have resumed under the Trump administration after initially stalling under President Biden. However, some US officials are concerned about security and economic risks due to the UAE's close links with China and Iran, the report said.
Critics also fear the project could undermine TSMC's US investment and give sensitive chipmaking expertise to rival powers. TSMC has not commented on the matter, and no timeline has been confirmed for the proposed UAE plant.
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