According to a report by Bloomberg, Taiwan Semiconductor Manufacturing Company (TSMC) is assessing the construction of an advanced chip manufacturing facility in the United Arab Emirates (UAE) and has engaged in discussions with the U.S. government regarding this matter. (Photo via AP)

The feasibility of this plan depends on the approval from the U.S. government. Insiders have disclosed that TSMC has recently met multiple times with U.S. Middle East envoy Steve Witkoff and officials from the AI technology investment fund MGX, supervised by the UAE president's brother. These discussions actually began during the Biden administration but ended without consensus, only to be revived after Trump's re-election.

The scale of the discussions is significant, potentially modeled after TSMC's extensive complex of six fabs in Arizona. In response, a TSMC spokesperson stated that the company will not comment on market rumors and remains focused on its existing expansion plans. The White House, Witkoff's team, the UAE's foreign ministry, and MGX have also not responded to inquiries.

The advancement of this plan by TSMC entirely hinges on the White House's position, as some senior officials in the Trump administration are concerned that this could affect TSMC's investments in the U.S. They also consider the relations between the UAE and China, and the influence of Iran in the region, noting that this could benefit either China or Iran, potentially raising national security concerns for the U.S.