Samsung to set up chip packaging research centre in Japan

  • TOKYO/SEOUL, Dec 21 (Reuters) – South Korea’s Samsung Electronics (005930.KS) will spend around 40 billion yen ($280 million) over five years in a facility for research into advanced chip packaging it will set up in Japan, according to an announcement by the city of Yokohama.
  • Reuters reported in March that Samsung was looking at building a packaging facility in Kanagawa prefecture, where it already has a research and development centre, to deepen ties with Japanese makers of chipmaking equipment and materials.
  • Japan’s industry ministry said it would provide Samsung subsidies worth up to 20 billion yen as it looks to support the revitalisation of local chip manufacturing.
  • Samsung’s investment comes at a time of easing tensions between South Korea and Japan as the United States pushes allies to work together to counter China’s growing technological prowess.
  • The chipmaker began bolstering its advanced chip packaging group last year. Companies are racing to develop advanced packaging methods, which involve combining components in a single package to improve overall chip performance.
  • The Japanese facility will allow Samsung to strengthen its leadership in chips and work with packaging-related companies based in Yokohama, the head of Samsung’s chip business Kyung Kye-hyun said in the city’s statement.
  • ($1=142.8900 yen)

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