Taiwan Semiconductor Manufacturing Co. (TSMC) has officially stated that it will not establish a manufacturing facility in the Middle East. This announcement came from Chairman and CEO C. C. Wei, who made it clear during the company’s annual shareholders’ meeting that the claims of a potential chip foundry in the United Arab Emirates (UAE) are unfounded. He simply stated, “Two words: we won’t.”

Wei also addressed speculation regarding discussions with officials from both the United States and the UAE related to this project, dismissing such discussions as speculative. He likened these rumors to previous unfounded reports about TSMC considering taking a stake in Intel.

The decision not to pursue expansion into the UAE aligns with TSMC’s broader strategy of carefully positioning its manufacturing facilities in response to geopolitical considerations. The company has been expanding its manufacturing capabilities internationally, including investments in the US and Japan, to mitigate geopolitical risks and enhance supply chain resilience.

TSMC is a significant player in the semiconductor industry, producing approximately 90% of the world’s advanced chips and holding about 56% of the global foundry market share. This strategic importance underscores the company’s careful navigation of US-China tensions, especially as it faces increasing scrutiny from US politicians regarding its global operations.

Furthermore, TSMC’s refusal to engage in the UAE project reflects its ongoing commitment to maintaining its leadership in the semiconductor market, particularly amid rising global demand for advanced technologies, including those driven by artificial intelligence (AI).