Arthur T Knackerbracket has processed the following story:
A Bloomberg report, citing sources familiar with the matter, highlights that the proposed plant would be a gigafab, essentially a sprawling complex of multiple chipmaking facilities. If it comes to pass, it would represent a massive leap in the UAE's ambitions to become a key player in this field, even though it currently lacks skilled semiconductor labor.
TSMC has reportedly met several times in recent months with Steve Witkoff, the US Special Envoy to the Middle East, and MGX, a powerful UAE investment fund tied to the ruling family. The renewed interest comes amid broader negotiations around AI cooperation between the two countries.
Still, don't expect bulldozers on the ground anytime soon. The idea is still in early-stage talks, and whether it advances at all hinges on how the US feels about it, particularly given the national security and economic implications.
Critics inside the administration point to the UAE's ties to China and the risk of future technology transfers. AI data centers can be more easily regulated through licensing and oversight, but a chip manufacturing plant would create a pipeline of advanced know-how and local production that the US could lose control over.
It's worth mentioning that TSMC is already investing heavily in the US through its Arizona project, which is expected to cost $165 billion and includes fabs, research labs, and chip packaging facilities. The US committed $6.6 billion in subsidies to help make that happen as part of the CHIPS Act. But some in the Trump administration worry that spreading TSMC's resources too thin, especially in a region with complex geopolitics like the Gulf, could backfire.
Regardless of the outcome, the UAE continues to position itself as a regional tech leader and has been aggressively courting partnerships in AI, quantum computing, and cloud infrastructure. Last month, Trump announced a series of agreements with multiple Gulf countries, including the UAE, related to exporting AI chips and developing AI infrastructure.
(Score: 2) by gawdonblue on Friday June 06, @04:02AM (1 child)
What would happen if TSMC just told the USA to pull its proverbial head in?
Would the USA ban TSMC products? Doubt it as cannot imagine a worse case of cutting of your nose to spite your face.
Would the USA try to goad China into attacking Taiwan? Doubt it for the same reasons.
Would the USA sanction TSMC owners/executives? Maybe, but this would further encourage isolating the USA.
Something else?
(Score: 1) by shrewdsheep on Friday June 06, @12:33PM
Well, they should but it will take some more time.
I guess the USA threatening all kinds of things. They might be threatening to cut off supply from ASML. For that, Europe would have to tell the USA to pull its proverbial head in. Europe still has to grow balls. The US running a protection racket is probably also threatening to leave Taiwan to China, which, in principle is an empty threat.
(Score: 3, Touché) by Frosty Piss on Friday June 06, @04:01PM
TSMC is in "talks" with the US only as a sort of "holding pattern" until the current Junta has been removed from power, it makes them less of a target for the total madness and irrationality coming out of D.C. at the moment.