Samsung To Invest $280M In Chip Packaging Research Facility In Japan

Samsung Electronics Co Ltd SSNLF, the South Korean tech titan, is eyeing to establish a chip packaging research facility in Japan.

What Happened: Samsung intends to allocate approximately 40 billion yen (equivalent to $280 million) over five years for a newly proposed research facility in Japan. The confirmation of this investment comes from the city of Yokohama, Reuters reported.

The facility will be dedicated to advanced chip packaging research, an important sector where companies endeavor to enhance chip performance by consolidating components in a single package. Last year, Samsung began reinforcing its department in this field.

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The new facility will be situated in Kanagawa prefecture, where Samsung already operates a research and development center. This initiative aims to strengthen ties with Japanese chipmaking equipment and material manufacturers.

Japan’s industry ministry is backing this development by offering subsidies of up to 20 billion yen, as part of its strategy to rejuvenate domestic chip manufacturing.

Kyung Kye-Hyun, the chief of Samsung’s chip business, stated that the Japanese facility will augment Samsung’s leadership in the chip industry and enhance partnerships with packaging-related companies based in Yokohama.

Why It Matters: The investment in the Japanese research facility aligns with Samsung’s recent moves to expand its global footprint. Earlier this year, it was reported that Samsung was eyeing a $75 million chip test line in Japan, aiming to take advantage of the low labor costs, among other factors.

Meanwhile, in September, Samsung began laptop manufacturing at its Noida facility in India, representing a broader trend of global hardware firms collaborating with Indian companies.

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