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Samsung to Invest US$220 Million in Chip Production Line in Tokyo, Japan

Update time : 2023-05-16 15:42:09

According to Japanese media reports, following TSMC's investment in a new wafer fab in Japan, South Korea's Samsung Electronics plans to invest 30 billion yen (about $220 million) to build a semiconductor back-end packaging and testing line in Yokohama, Japan, which is expected to be completed in 2025 for mass production. According to the report, the new facility will focus on the "back-end" of the chip process, which is the packaging and testing stage of the prototype wafer.
Samsung used to focus on the development of advanced process miniaturization technology at the front end of the semiconductor, but in the current Moore's Law continues to slow down, advanced process advancement is increasingly difficult, Samsung has also begun to actively develop the back-end of the advanced packaging technology in recent years. As Japan is a powerhouse in semiconductor equipment and materials, Samsung hopes to work closely with Japanese material and equipment suppliers to achieve breakthroughs in semiconductor manufacturing. According to an analysis of the "Chip Act" passed in Japan, Samsung will receive approximately 10 billion yen (approximately US$73.6 million) in tax breaks and financial assistance for this investment, which is an incentive provided by the Japanese government for companies investing in the semiconductor chip manufacturing sector in the country.
South Korean President Yun Seok-yue and Japanese Prime Minister Fumio Kishida are currently working to promote cooperation between the two countries' semiconductor companies, and the two leaders are also expected to meet again in the near future during the G7 summit in Hiroshima, Japan. The report also points out that Samsung's investment in Japan is actually aimed at rival TSMC as well. TSMC announced in 2021 that it would build a semiconductor fab in Kumamoto, Japan, in collaboration with SONY and DENSO, as part of Japan's plan to revive the development of the semiconductor manufacturing sector and to attract foreign investment in Japan. In addition to TSMC, US memory chip maker Micron is also investing in Japan and has been granted relevant rental tax incentives.

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