Samsung Electronics will establish an advanced chip packaging research center in Yokohama with a ¥25 billion ($170 million) investment, scheduled to open in March 2027, as the South Korean chipmaker scrambles to catch up with Taiwan Semiconductor Manufacturing Co. in the lucrative packaging market.
The facility represents Samsung’s latest attempt to gain ground against TSMC, which has dominated advanced packaging with technologies like chip-on-wafer-on-substrate and system-on-wafer solutions. Samsung currently holds just 5.9% of the global chip packaging market, highlighting the scale of its challenge.
The research lab will collaborate with Japanese suppliers including Disco Corp., Namics Corp., and Rasonac Corp., alongside the University of Tokyo. However, TSMC established its own research partnership with the same university in 2019, announcing its first overseas joint laboratory there in June 2025.
Samsung’s move comes as the company develops system-on-panel technology to compete with TSMC’s offerings. The Korean giant’s foundry division has struggled to secure major customers, while TSMC continues expanding its packaging capabilities with new facilities in Taiwan and partnerships in Arizona.
The advanced packaging market, valued at $37.89 billion in 2024, is projected to reach $78.75 billion by 2034, driven primarily by artificial intelligence and high-performance computing demands. Samsung’s investment signals recognition that packaging has become as critical as manufacturing in the semiconductor race.
