According to a Wall Street Journal report cited by Reuters, two of the world’s largest chipmakers, TSMC and Samsung Electronics, have explored potential chip projects in the United Arab Emirates (UAE) that could be worth over $100 billion in the coming years.

Top executives from TSMC have visited the UAE and discussed building a chip plant complex comparable to the company’s most advanced facilities in Taiwan, WSJ reported, citing sources familiar with the talks.

In response to the rumors, TSMC stated that the company always welcomes constructive discussions that promote the development of the semiconductor industry with an open attitude. TSMC is currently focused on its existing global projects and has no specific plans for new overseas investments at this time.

South Korea’s Samsung Electronics is also considering large-scale chip manufacturing operations in the UAE, with the discussions still in early stages, according to unnamed sources cited by WSJ.

Senior figures from Samsung recently visited the UAE and engaged in discussions about the project, though it is still in its infancy and could face technical and other challenges, the WSJ noted.

Neither TSMC nor Samsung responded immediately to Reuters’ request for comment.

The UAE is expected to fund these projects, with Abu Dhabi’s sovereign wealth fund, Mubadala, playing a central role, WSJ said, adding that the broader aim is to increase global chip production and lower prices without cutting into chipmakers’ margins.

As tech deals accelerate in the region, Washington has grown more concerned about the UAE and other Middle Eastern countries becoming channels for advanced U.S. AI technology reaching China.

Notably, the UAE has recently made strides in positioning itself as a key player in advanced technologies. In March, the Financial Times reported that Abu Dhabi’s newly formed AI investment company, MGX, had begun preliminary discussions with OpenAI regarding chip business investments—part of the UAE’s ambition to become a global leader in AI development.

Earlier this year, in February, the WSJ also reported that OpenAI CEO Sam Altman had met with investors in the UAE and other regions to discuss massively scaling up production of chips, power, and other key AI infrastructure—a move that could eventually require up to $7 trillion in investments.

(Photo credit: TSMC)