Samsung invests in Japan to build a chip research and development production line

Source: Semiconductor Industry Observation

    Samsung Electronics has boldly invested $222 million to build a new development facility in Yokohama, Japan. This move is expected to promote cooperation between Japan and South Korea, the two most advanced chip industries in the world.

    As reported for the first time by Nikkei Asia, this investment will leverage the common expertise of both countries. Samsung is the world‘s largest storage chip manufacturer, while Japan is the main producer of basic materials for chip production, such as wafers and chip manufacturing, and is in a leading position in equipment.

    The new facility, which will be built separately in the city, is still shrouded in mystery, and specific details have not yet been revealed. Nikkei detailed the South Korean technology giant‘s plan to build a production line for prototype chip devices.

    The factory is expected to hire hundreds of employees and begin operations in 2025. Interestingly, Samsung is seeking to utilize semiconductor investment subsidies provided by the Japanese government.

    This strategic move by Samsung Electronics may strengthen the already strong relationship between the two countries. This investment is not only an excellent opportunity for Samsung to expand its footprint in the region, but also marks a significant transformation in the global semiconductor industry.

    In other recovery efforts, South Korea has officially re listed Japan as its preferred trading partner, following a three-year trade dispute that began with a diplomatic dispute over historical issues.

    Al Jazeera said the move came after the two countries reached an agreement last year to resolve a long-standing dispute over compensation for Koreans forced to work in Japanese factories during World War II.

    This decision means that Japan will now enjoy lower tariffs on exports to South Korea, placing it on an equal footing with other major trading partners. However, Seoul has made it clear that it will continue to closely monitor Japan‘s trade behavior and may take further action if necessary.

    After the reconciliation between the two countries led by South Korean President Yoon Suk Yeol and Japan‘s Sx Fumio Kishida, this investment is expected to become a highly symbolic initiative. The two leaders are scheduled to meet next week during the G7 summit in Hiroshima.

    This move follows a similar investment by its main competitor, TSMC, which is also trying to diversify its production base due to concerns that chip production will be concentrated in Taiwan.

    Samsung‘s new investment will enable the company to establish a factory in Japan that focuses on the "backend" of semiconductor production. Samsung‘s decision to collaborate more closely with Japanese material and equipment manufacturers indicates that the company is seeking breakthroughs in production.

    The Nikkei pointed out that this investment is also expected to help Japan rebuild its production base by attracting foreign investment. TSMC and Micron Technology are the main foreign investors receiving subsidies from the Japanese government in Japan.

     Through this move, Samsung has joined the increasing list of technology giants investing in the region, which may promote more cooperation between the chip industries of the two countries.