Taiwan Semiconductor Manufacturing Company (TSMC) is reportedly resuming discussions to establish a factory in the United Arab Emirates after conversations were paused at the end of former US President Joe Biden’s term. The company has been in talks with Steve Witkoff, the US special envoy to the Middle East, as well as executives from Abu Dhabi’s MGX regarding the plant’s development, according to a report by Bloomberg citing informed sources.

MGX, which was launched in March 2022, was founded by the Abu Dhabi sovereign wealth fund, Mubadala Investment Company, and G42, the emirate’s artificial intelligence (AI) investment arm. The timeline for the establishment of a factory in the UAE remains uncertain, with reports suggesting it may take several years before any site is operational.

In May, during a meeting between US President Donald Trump and UAE President Sheikh Mohamed bin Zayed Al Nahyan, the US and UAE announced plans for a 10-square-mile AI campus in Abu Dhabi. The first phase of the Stargate UAE project, which will have a capacity of five gigawatts, is expected to come online in 2026 and will utilize advanced Nvidia graphics processing units (GPUs).

This project has gained momentum following Washington’s decision to lift certain export controls to the UAE, which followed an Emirati diplomatic campaign that included promises of US investments and a severing of G42’s ties with China. Last year, The Wall Street Journal reported that both TSMC and Samsung Electronics were exploring the possibility of establishing large manufacturing facilities in the UAE, with discussions focusing on funding for these projects, particularly from Mubadala.