Tech Giant Samsung Invests in Japanese Chip Packaging, Boosting Global Semiconductor Race

Samsung Electronics Co SSNLF, a leading South Korean tech company, plans to invest approximately 40 billion yen ($280 million) over five years in a new advanced chip packaging research facility in Japan. 

The city of Yokohama announced this significant investment. Earlier this year, reportedly, Samsung won the contract to supply advanced memory chips to Nvidia. 

The Taiwan Semiconductor Manufacturing Co TSM rival's decision to set up the facility in Japan follows reports from March that the company was considering establishing a packaging site in Kanagawa prefecture, where it already has a research and development center.

This move is part of Samsung's strategy to enhance collaboration with Japanese chipmaking equipment and materials manufacturers, Reuters reports. 

Also Read: Key Nvidia Supplier TSMC Reportedly Eyes Advanced 3nm Chip Plant In Japan

The Japanese industry ministry supports this initiative by offering subsidies of up to 20 billion yen to aid in rejuvenating Japan's domestic chip manufacturing sector.

Samsung's investment comes amid reduced tensions between South Korea and Japan, aligning with the U.S.'s push for its allies to join forces against China's technological advancement. 

Investing in the Japanese facility is also a step in Samsung's ongoing effort to strengthen its advanced chip packaging capabilities. 

Companies compete to develop techniques combining multiple components in a single package in this critical area, enhancing chip performance.

According to Kyung Kye-hyun, the head of Samsung's chip business, the new facility in Yokohama will not only bolster Samsung's leadership in the chip industry but also facilitate partnerships with local packaging-related companies, further integrating and expanding Samsung's reach in the global chip market.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.