The Wall Street Journal reports that both companies have held talks with officials in the United Arab Emirates but no plans have been confirmed — though the projects could be worth more than $100 billion.
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TSMC executives are reported to have flown into the country and discussed plans to build semiconductor factories comparable to some of the largest plants in its home, Taiwan.
Samsung meanwhile has also held talks, with senior leaders at the company having reportedly visited the UAE for the same reason.
The projects would be funded by the UAE, with the country's asset management firm Mubadala — which purchased a stake in fintech Revolut — also reportedly involved.
Both firms are looking to increase their production efforts amid increasing demands from customers looking for hardware to power AI workloads.
In a statement, a TSMC spokesperson said: "We are always open to constructive discussion on ways to promote development of the semiconductor industry, but we remain focused on our current global expansion projects and have no new investment plans to disclose at this time."
Capacity has also reached out to Samsung for comment.
The region has increasingly sought to attract investments in the tech sector, with Gulf-based investors believed to be among those Sam Altman is touting for a rumoured AI chip project.
Just last week, Microsoft announced it would be launching two data centres in Dubai alongside G42 that would power responsible AI workloads.
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