Critical chip move from Samsung to Japan

It has been reported that Samsung, the world’s largest memory chip maker, will establish a new chip development facility in Yokohama, Japan. This highly symbolic initiative will bring together Japanese and South Korean chip companies to combat competition from the Chinese and Taiwanese markets. In a way, two blocks will appear in chip production.

Significant breakthrough from Samsung to Japan

This new chip development facility will cost approximately $222 million and will be built on the site of the Samsung R&D Institute, southwest of Tokyo. However, according to reports, the new facility will operate separately. While the details are not clear, Samsung will build a production line for a prototype semiconductor chip device and employ several hundred people. According to the statements, Samsung will take this facility into use in 2025.

Japanese manufacturers proximity

Companies often focus on the front end of chip manufacturing through the extreme miniaturization of transistors and electrical circuits. However, some experts believe there is a limit to this process and the focus will now shift to a different manufacturing technique by stacking multiple wafer layers. In this context, since Japan is one of the top manufacturers of materials and equipment for semiconductor chip manufacturing, Samsung wants to work closely with material and equipment manufacturers in Japan to make a breakthrough in the chip manufacturing process.

Samsung could also benefit from tax breaks and financial incentives worth about $73.6 million offered by the Japanese government to companies that want to invest in the semiconductor chip space. Japanese Prime Minister Fumio Kishida and South Korean President Yoon Suk Yeol are working to promote cooperation between chip companies in their respective countries. Samsung’s primary competitor, TSMC, also invested in Japan in 2021. Japan was once the global leader in the memory chip segment and is trying to rebuild its presence by attracting foreign investment. Alongside TSMC, American memory chip maker Micron also invested in Japan and received tax incentives.