South Korea’s Samsung Electronics will invest around 40 billion yen ($280 million) over five years in a facility for research into advanced chip packaging it will set up in Japan, according to an announcement by the city of Yokohama. The city says the investment will help strengthen ties between Samsung and Japanese chipmaking equipment and materials makers.
The move aims to boost the company’s competitiveness in the increasingly competitive world of semiconductor technology, the industry that underpins smartphones, tablets, and high-definition TVs. Companies are racing to develop cutting-edge packages for components such as processors and memory chips, which can boost overall performance. By partnering with Yokohama-based companies specializing in packaging-related technologies, Samsung hopes to foster innovation and maintain its leadership position in the field, the head of its chip business, Kyung Kye-hyun, said in the city’s announcement.
Japan, the world’s top producer of memory chips, has long pushed for foreign investment in its domestic semiconductor manufacturing sector to offset a shrinking workforce. Its government provides subsidies to attract foreign investment and boost domestic production.
Samsung’s decision to set up a development facility in Japan is likely an essential milestone for cooperation between the two countries, Nikkei Asia reported without citing sources. The chipmaker plans to build a development plant in Yokohama, southwest of Tokyo, including a prototype semiconductor chip device production line. The report said the facility is expected to cost more than 30 billion yen, including 10 billion yen worth of government subsidies. The facility is scheduled to start operations in 2025.
This will be the first time Samsung has established a research center in Japan, and it marks an expansion of its partnership with Dutch firm ASML, which makes equipment used in making computer chips. In April, the two firms signed a partnership to develop chip manufacturing technologies, including an ultra-high-definition screen that can display images without color distortion, even in bright surroundings.
The agreement comes as tensions between Japan and South Korea show signs of easing following the end of a two-and-a-half-year trade dispute over semiconductors and other products. The new research facility is expected to capitalize on the Japanese government’s subsidies for semiconductor investments, which are capped at 10 billion yen per project.
Samsung’s Yokohama research center will be located in the Minato Mirai business district and is expected to employ about 100 engineers in 2024. It will focus on designing and verifying a new semiconductor device that can process and transmit massive amounts of data, such as high-definition video and audio, over wireless networks. The device will support 4G LTE, the prevailing mobile broadband standard that can deliver a fast data rate for downloads and live streaming. The company plans to use the new technology in its Galaxy smartphones, tablet computers, and other consumer electronics, such as robot vacuum cleaners and washing machines.
