- Partnering with the UAE also signifies a step toward strengthening bilateral economic ties and promoting technological collaboration.
- TSMC can better serve markets in the Middle East and neighbouring regions, reducing logistical complexities and improving service responsiveness.
- TSMC has announced plans to establish a chip design centre in Munich, Germany, marking its first such facility on the European continent.
The decision by Taiwan Semiconductor Manufacturing Company (TSMC) to build an advanced chip fabrication facility in the UAE aligns with broader geopolitical and economic trends, including diversification of supply chains and increasing demand for semiconductors worldwide.
By situating a fabrication plant in the region, TSMC can better serve markets in the Middle East and neighbouring regions, reducing logistical complexities and improving service responsiveness.
This initiative involves discussions with officials from the US administration, reflecting the necessity for Washington’s approval to proceed. The proposed plant is envisioned to mirror the scale and scope of TSMC’s ongoing project in Arizona, although actual construction would only commence several years after receiving authorisation.
A pivotal contributor
TSMC’s prominence in the semiconductor industry is underscored by its clientele, which includes leading technology firms such as Nvidia, Apple, AMD, and Broadcom. The company’s expertise and innovation make it a pivotal contributor to the global hardware supply chain.
Moreover, the UAE offers an attractive business environment with robust infrastructure, political stability, and incentives aimed at fostering innovation and industry growth. Partnering with the UAE also signifies a step toward strengthening bilateral economic ties and promoting technological collaboration.
The UAE’s growing technological ambitions and investment in high-tech industries make it a favourable location for such a facility.
The UAE’s pursuit of a greater technological footprint, particularly in artificial intelligence, aligns strategically with TSMC’s potential investment. Recently, the UAE unveiled plans for a substantial 5-gigawatt AI campus in Abu Dhabi, developed by the local firm G42 in collaboration with major US technology companies.
This development highlights the UAE’s commitment to becoming a key player in the technology sector.
Munich centre
The ambitious project envisaged by TSMC would involve the creation of a gigafab—a complex similar to the one under construction in Arizona—consisting of multiple factories.
While precise financial commitments for the UAE facility are yet to be disclosed, TSMC has allocated $165 billion for its Phoenix initiative, encompassing research and packaging operations.
TSMC is making big investments globally and as part of it the Taiwanese giant has announced plans to establish a chip design centre in Munich, Germany, marking its first such facility on the European continent.
Key application areas include automotive, industrial, artificial intelligence, and the Internet of Things (IoT), as highlighted by Paul de Bot, president of TSMC Europe.
Currently, TSMC operates nine chip design centers globally, including locations in Canada, China, Japan, Taiwan, and the United States. The Munich facility expands the company’s footprint in Europe, complementing its existing investments on the continent.
Notably, Germany is also the site of TSMC’s inaugural European semiconductor fabrication plant, located in Dresden. This manufacturing hub, named the European Semiconductor Manufacturing Company (ESMC), is a joint venture involving TSMC and prominent European partners NXP, Infineon, and Bosch, each holding a ten percent equity stake.
With a projected investment exceeding $10 billion, the Dresden fab is expected to commence operations by 2027 and produce approximately 40,000 wafers monthly. While the facility will focus on mature semiconductor nodes—28nm, 22nm, and 16/12nm—it is not intended for manufacturing TSMC’s most cutting-edge chips.
Related Posts:
- Oracle stands to reap harvest with OpenAI on Stargate Project
- Dubai-based DAMAC to invest $20b in US data centres
- G42 and NVIDIA team up to set up Earth-2 Climate Tech Lab
- Tech giants seek to raise $100b to invest in AI-powered data centres