{"id":104227,"date":"2025-06-02T00:00:00","date_gmt":"2025-06-02T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/tsmc-is-reviving-potential-plans-for-a-usd-multi-bn-advanced-chip-factory-in-the-uae\/"},"modified":"2025-06-02T00:00:00","modified_gmt":"2025-06-02T00:00:00","slug":"tsmc-is-reviving-potential-plans-for-a-usd-multi-bn-advanced-chip-factory-in-the-uae","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2025\/06\/02\/tsmc-is-reviving-potential-plans-for-a-usd-multi-bn-advanced-chip-factory-in-the-uae\/","title":{"rendered":"TSMC is reviving potential plans for a USD multi-bn advanced chip factory in the UAE"},"content":{"rendered":"

Good morning, ladies and gentlemen<\/strong>, and welcome to the first workweek of a new month. We\u2019re starting off the week with what we like to call a Goldilocks issue \u2014 not quite a slow cycle, certainly not an overwhelmingly busy Monday morning. <\/p>\n

Leading the news well this morning:<\/strong> Fresh figures out of Abu Dhabi and Dubai point to cooler inflation in both emirates in April, with a steep decline in transport prices in Abu Dhabi helping to keep inflation in check. <\/p>\n

ALSO- Mubadala invested in a new USD 1.7 bn convertible bond issuance from popular messaging platform Telegram<\/strong>, along with other major institutional investors such as BlackRock. <\/p>\n

^^ We have chapter and verse on these stories and more in this morning\u2019s newswell, below.<\/p>\n

WATCH THIS SPACE-<\/p>\n

#1- <\/strong>UPDATE<\/strong>- <\/strong>DFM-listed district cooling heavyweight Tabreed and Luxembourg-based PE firm CVC are reportedly in exclusive negotiations to acquire the cooling arm of ADX-listed Multiply Group \u2014 Pal Cooling Holding \u2014 in a transaction expected to exceed USD 1.1 bn, Reuters<\/a> reports, citing sources it says are familiar with the matter. Bilateral talks have commenced, the sources said, implying that the consortium is positioned ahead of other bidders<\/a> including KKR, Investcorp, and ADX-listed Taqa.<\/p>\n

<\/a> #2- T<\/strong>SMC\u2019s <\/strong>UAE chip plant plans are back on the table: <\/strong>Taiwanese chip manufacturer TSMC is again considering a potential multi-bn USD advanced chip factory in the UAE, Bloomberg<\/a> reports, citing people familiar with the matter. The proposed site will reportedly be a \u201cgigafab\u201d \u2014 a complex of six factories \u2014 but it\u2019s unlikely that TSMC would break ground on the complex for \u201cseveral years.\u201d<\/p>\n

Behind the scenes:<\/strong> TSMC \u2014 a big player in the semiconductor supply chain providing for the likes of Nvidia \u2014 has reportedly held multiple meetings with the US\u2019 Middle East Special Envoy Steve Witkoff and Abu Dhabi AI fund MGX in recent months, as any facility would require US administration approval. Talks were shelved under the previous administration following US security concerns. They have since resumed under Trump amid growing UAE-US AI ties.<\/p>\n

ICYMI-<\/strong> Last September, TSMC and Samsung were both reportedly exploring UAE chip facilities last year, holding early talks with UAE officials<\/a>. Mubadala was said to be in talks to fund the projects, which faced hurdles from water scarcity to managing geopolitical sensitivities, especially with Washington and Beijing. OpenAI CEO Sam Altman had also reportedly met with UAE figures<\/a>, including Sheikh Tahnoon, to explore launching a chip venture for his firm in partnership with TSMC.<\/p>\n

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<\/a> #3- Emirates plans to continue operating its fleet of more than 100 Airbus A380s until the end<\/strong> of the next decade<\/strong>, Bloomberg<\/a> quotes the president of the country\u2019s flagship carrier Tim Clark as telling journalists. The carrier will introduce another round of first-class cabin upgrades as part of a USD multi-bn refresh as it waits on the delivery of aircraft to replace the A380, which carries with it high operational costs.<\/p>\n

REMEMBER- <\/strong>Emirates began receiving Airbus A350s<\/a> earlier this year, with up to 15 more set to arrive this summer. The airline is holding off on ordering the A350-1000 due to concerns over engine durability, and it is still awaiting the delayed Boeing 777X, now expected between late 2026 and 1Q 2027, Clark said<\/a>. It is also retrofitting dozens of Airbus and Boeing aircraft under a USD 5 bn upgrade program<\/a>, and aims to expand its fleet with 315 new aircraft by 2032 \u2014 including 65 A350s, 240 Boeing 777X and 787s, and 10 cargo planes.<\/p>\n

ALSO-<\/strong> Clark criticized Boeing and Airbus for prolonged supply delays that are holding <\/strong>back fleet upgrades<\/strong>, Reuters<\/a> reports, citing comments made by Clark on the sidelines of the IATA airline summit. He highlighted the six-year delay of the 777X delivery.<\/p>\n

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#4- <\/strong>An undisclose<\/strong>d shareholder in First Abu Dhabi Bank (FAB) is offloading a 1% stake<\/strong> (good for 113 mn shares) at a fixed price of AED 15.5 apiece \u2014 3.7% lower than Friday\u2019s close \u2014 Bloomberg<\/a> reports, citing terms it had seen. The lender\u2019s share price rose to a two-year high on Thursday, before shedding 3.2% to settle at AED 16.1 apiece on Friday\u2019s close. The price values the transaction at AED 1.75 bn. Citi is the sole arranger on the transaction.<\/p>\n

<\/a> #5- <\/strong>Adani pulls th<\/strong>e plug on its Emaar play:<\/strong> Adani Group\u2019s real estate arm reportedly decided to walk away from a potential acquisition of Emaar Group\u2019s India operations<\/a>, after the two sides failed to agree on valuation, Bloomberg<\/a> reports, citing sources it says are familiar with the matter. The business information service said in March<\/a> that the transaction could see an unlisted Adani unit invest USD 400 mn in equity in Emaar India at an enterprise value of USD 1.4 bn.<\/p>\n

#6- <\/strong>UAE customers b<\/strong>ear the brunt of heightened container prices: <\/strong>UAE buyers are facing price hikes amid a surge in shipping costs driven by the US-Sino trade war and export scramble, Vice Chairman of Danube Group Anis Sajan told Khaleej Times<\/a>. \u201cShipping costs have more than doubled over the past 10 to 15 days. We used to pay between USD 1k to USD 1.4k per container, but now we\u2019re being quoted USD 2k to USD 3k,\u201d Sajan added. The hike will likely impact firms that will not be able to sustain the high costs, indicating that UAE residents are likely to \u201csee prices increase in certain goods, particularly imported building materials and essential items,\u201d Sajan noted.<\/p>\n

Traders struggle to find availability:<\/strong> A temporary relaxation of tariffs<\/a> between the two countries has not only shot up prices, but also tightened container availability. \u201cIn some cases, we\u2019re willing to pay double, but we still can\u2019t secure containers,\u201d he added. Small and Medium Enterprises (SMEs) are particularly vulnerable, with the spike in costs and delays damaging supply chains.<\/p>\n

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PSAs- <\/p>\n

#1- <\/strong>Fuel <\/strong>prices are more or less staying the same in June:<\/strong> The Fuel Price Committee left most fuel prices unchanged from May<\/a>, with only diesel seeing a slight decline, according to a post on X<\/a>. <\/p>\n

The new breakdown per liter:<\/strong><\/p>\n