The plans of chip manufacturer TSMC for a plant in the United Arab Emirates (UAE) have drawn criticism from the USA. TSMC is considering the construction of a Gigafab, a factory complex similar to the TSMC project in Phoenix, Arizona. While TSMC’s willingness to invest in the UAE remains unclear, the plant in Phoenix is expected to cost the company over 150 billion euros. This is reported by the Taipei Times.
The US government fears that the plant in the UAE could benefit China by transferring advanced US technology. This is because the Gulf state maintains close relations with Beijing. There are also fears that a potential plant in the UAE could divert financial or human resources away from Phoenix – especially as TSMC has already warned that costs could rise if Trump follows through on his threats to impose tariffs on semiconductors. Emily Kossak