Samsung Electronics to Establish a Chip Research Lab in Japan to Get Subsidies From the Government

Samsung Electronics is setting up a new semiconductor research facility in Japan near Tokyo. The South Korean firm is reportedly spending $280 million or ¥40 billion on this project.

According to NHK Japan, Samsung Electronics will build its research and development (R&D) hub in the Minato Mirai business district located in the city of Yokohama. The site is expected to be a center for inventing chip-packaging technology for high-performance silicon.

Japanese Government's Subsidy Grant

It was reported that Japan has been continuously working on attracting foreign semiconductor companies so they will open their facilities in the country. This is because the nation sees chipmaking as critical to economic security and would like to boost its local supply chain.

As part of its efforts to entice chipmakers, the Japanese Ministry of Industry revealed it will grant subsidies to Samsung Electronics worth up to ¥20 billion. With this amount, the government covers almost 50% of the total cost of the new R&D facility.

Japan will continue to scale up its chip industry as it looks to support the recovery of domestic chip manufacturing. Prime Minister Kishida Fumio confirmed that the government committed to subsidizing Samsung Electronics for its advanced chip lab in the territory. In any case, Reuters reported that the electronics firm's $280 million investment is set to be distributed over five years.

Details About the New Samsung Research Center

Meanwhile, Korea Joongang Daily mentioned that Samsung Electronics' research center in Tokyo has been named the "Advanced Package Lab" or simply APL. The hub will have a floor space measuring 71,000 square feet and be divided to house the company's research facilities and backup offices. The firm aims to open the lab in 2024 and is expected to hire about 100 new researchers.

"Samsung wishes to fortify leadership in semiconductors through continuous technology research," Samsung's head of chip unit, Kyung Kye Hyun, said in a statement this week. "Yokohama is one of the most suitable locations to collaborate with industries, universities and research centers, as it houses many companies and institutions related to chip packaging."

Photo by: Samsung Media Library