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Samsung Electronics to Receive $140 Million Subsidy from Japan for New Chip Development Facility

Samsung's Investment in Tokyo-Area Hub Strengthens Japan-South Korea Ties, Boosts Japan's Chip Industry Revival Efforts
South Korea
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Samsung Electronics is set to receive a substantial subsidy of up to 20 billion yen ($140 million) from the Japanese government, as announced by Japan’s Ministry for Economy, Trade and Industry on Thursday. This funding is part of a major initiative to build a new chip development facility near Tokyo, marking a significant investment in the region’s semiconductor industry.

The total investment for Samsung’s new hub is estimated at 40 billion yen, with the Japanese government committing to subsidize up to half of this amount. The development will concentrate on chip packaging, a critical and advanced phase in the chipmaking process, essential for producing more powerful chips. This focus aligns with the strategic directions of other global semiconductor leaders like Intel and TSMC.

Samsung’s move to collaborate with Japanese partners in developing chip packaging technologies is a clear indication of the company’s commitment to innovation in this field. As of October, Samsung has reportedly secured numerous orders for advanced packaging from high-performance computing clients, both domestically and internationally.

This investment in Japan by Samsung comes at a time when diplomatic relations between Seoul and Tokyo are improving, following a period of historical and trade disputes. The decision to establish the facility in Japan is a significant step towards strengthening economic and technological ties between the two nations.

The establishment of Samsung’s facility in Yokohama, southwest of Tokyo, is part of a broader effort by Japan to rejuvenate its once-dominant chip industry. This effort includes major developments like TSMC’s first plant in Kumamoto and Rapidus’ planned mass production of chips in Hokkaido by 2027.

Samsung’s new development hub, which will operate independently from the existing Samsung R&D Institute Japan in Yokohama, represents not only a strengthening of South Korea-Japan relations but also a pivotal move in Japan’s ambitious plan to reassert itself as a leader in the global semiconductor market. This development is expected to bring significant advancements in chip technology and foster greater collaboration within the Asia-Pacific tech industry.

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