In recent years, the growing need for processors has led to manufacturing crises. The processor bottleneck, which impacted all sectors after the pandemic, has also driven up processor prices. From electric cars to smartphones, nearly every smart device introduced into our lives now relies on processors. The U.S. embargo on China has further complicated processor production. While TSMC had previously invested in Japan, the company is now shifting its focus to the Middle East. Similarly, Samsung, its biggest rival, has also started negotiations with the same region.

TSMC and Samsung Negotiating with UAE for a $100 Billion Processor Factory

The United Arab Emirates (UAE), known in recent years for its technological investments and space research, has now become the target for two major tech giants looking to establish processor factories. Initially, TSMC executives held private meetings in the UAE and began scouting locations for a potential factory.

At the same time, Samsung has entered negotiations with the UAE, also planning to establish a processor factory in the country. But why the UAE? Although there is no definitive answer to this question yet, it is known that the UAE has been actively encouraging such investments. According to a report by The Wall Street Journal, both companies believe this project could potentially involve an investment worth $100 billion. However, it remains unclear whether both companies will build factories in the UAE or if the UAE will choose just one.

The UAE, located along the shores of the Persian Gulf, serves as a crucial gateway for trade between Asia and Europe. Over the past decade, Dubai’s allure has attracted various technological investments to the region. The UAE is among the countries that have invested significant effort and money into increasing technological investments within its borders.

As you may know, Intel began construction on the world’s largest processor factory in Ohio in 2020, and the company is also making progress on a processor factory in Israel. Recently, Turkey has also opened its purse strings, aiming to attract investments for processor factories.

The rapid advancement of artificial intelligence technology over the past two years has pushed the limits of processor production. Companies seeking to claim a share of this lucrative industry cannot afford to lag behind in processor manufacturing. Currently, TSMC, Intel, and Samsung dominate the field of processor production, while companies like AMD and Qualcomm typically rely on TSMC to manufacture their processors.

The increasing demand for processors, now even essential for automobiles, is likely to intensify this processor race. Turkey, too, is making efforts to attract one of the major players in hopes of securing a share in this market. But with countries like the UAE and Israel offering much higher incentives, do you think Turkey truly stands a chance of hosting a processor factory? Let us know your thoughts in the comments.