Samsung Electronics Co is to build a new semiconductor chip development facility in Japan, Japan’s Nihon Keizai Shimbun reported.
The plant would be in Yokohama, where Samsung has a research and development site, the report said, without citing anyone.
The South Korean firm would build a production line for a prototype chip, and the facility would cost more than ￥30 billion (US$221 million), with the Japanese government expected to provide more than ￥10 billion in subsidies, it said.
Photo: AFP
Operations are targeted to begin in 2025, it reported.
Samsung’s move follows its bigger foundry rival Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which is building a plant in Japan’s Kumamoto Prefecture for its 12-nanometer, 16-nanometer and 22-nanometer processes, as well as 28-nanometer specialty technology, with commercial production expected to start next year.
TSMC is building the plant through Japan Advanced Semiconductor Manufacturing Inc, a joint venture with Sony Semiconductor Solution Corp and Denso Corp.
Relations between Japan and South Korea are improving, with their leaders visiting each other’s nations and agreeing to cooperate on chips and security.
The Japanese government has also been signaling support for semiconductor and battery projects as it tries to bolster its supply chain for the key products. Japan would provide subsidies for eight battery and two semiconductor projects, Japanese Minister of Economy, Trade and Industry Yasutoshi Nishimura said last month.
Separately, Samsung executive chairman Jay Y. Lee and Tesla Inc chief executive officer Elon Musk met in the US last week, South Korea’s Yonhap news agency reported.
Lee and Musk held the meeting at Samsung’s semiconductor research center in Silicon Valley, California, on Wednesday, Yonhap said yesterday.
The two companies are looking at possibly joining forces to develop chips for fully autonomous vehicles among other things, the report cited people in the industry as saying.
The global market for automotive chips is expected to rise to US$400 billion by next year, and to jump to US$700 billion by 2028, Yonhap said, citing Strategic Analytics and Research and Markets.
Lee wrapped up his 22-day visit to the US on Friday, after a series of meetings with other business leaders including Microsoft Corp CEO Satya Nadella and Google CEO Sundar Pichai, the report said.
The meeting was Lee’s first private one with Musk, Yonhap said.
Additional reporting by CNA
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