The Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Electronics are discussing the construction of huge production complexes in the United Arab Emirates (UAE), the Wall Street Journal has quoted unnamed sources as saying.
The developments come amid growing competition between the US and China to prevail in the prospering global chip industry, which may grow to $1.4 trillion in revenue by 2030.
The Biden administration earlier required licenses for those companies that export chips to China using US tools or software, no matter where they're made in the world. China retaliated by restricting exports to the US of rare metals, such as gallium and germanium, which are used to manufacture semiconductors.
According to the White House, the US currently produces roughly 10% of semiconductor-related global goods, while China accounts for at least 15%.