Taiwan Semiconductor Manufacturing Company (TSMC) has restarted talks about building a semiconductor plant in the UAE, according to a report by Bloomberg. The discussions, previously paused near the end of former President Joe Biden’s term, are now back on the table.
TSMC is said to have held multiple meetings with Steve Witkoff, the U.S. special envoy to the Middle East, and executives from MGX, an Abu Dhabi-based tech investment firm, to explore plans for a manufacturing site.
MGX, launched last year, is backed by Mubadala Investment Company, Abu Dhabi’s sovereign wealth fund, and G42, the UAE’s fast-growing AI investment arm. While no official timeline has been announced, sources suggest the proposed chip plant may take several years to materialize.
This effort comes amid broader US-UAE tech cooperation, especially following the announcement of a 10-square-mile AI campus in Abu Dhabi, made during a May meeting between US President Donald Trump and UAE President Sheikh Mohamed bin Zayed Al Nahyan.
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The first phase of the Stargate UAE AI campus is expected to go live in 2026, powered by hundreds of thousands of Nvidia GPUs. The facility will offer 5 gigawatts of capacity, designed to support large-scale AI training and infrastructure.
How TSMC Plans Will Aid MENA Startups
If TSMC sets up in the UAE, it could dramatically shift the region’s tech landscape. For MENA startups, particularly in semiconductors, AI, robotics, and IoT, this move could bring:
- Shorter supply chains for advanced chips
- Stronger regional R&D infrastructure
- Access to a high-end fabrication resource
- Greater investor interest in hardware and deep tech
Combined with Stargate UAE and ongoing AI investments, this signals that the Gulf is positioning itself as a hub for next-gen computing, offering startups both the tools and funding to innovate at scale.
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