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Samsung reportedly to build back-end chipmaking faciltiy in Japan

Jingyue Hsiao, DIGITIMES Asia, Taipei 0

Credit: AFP

Samsung Electronics reportedly plans to set up a back-end semiconductor manufacturing facility in Japan after Japan and South Korea just ended their two-and-a-half-year trade chip dispute in March.

Nikkei Asia, citing sources, reported that Samsung Electronics would set up a JPY 30 billion (US$222 million) development facility in Yokohama for back-end semiconductor manufacturing and would employ hundreds of people. The facility is expected to begin operation in 2025.

Samsung declined to comment on the rumor to Nikkei. Meanwhile, Samsung R&D Institute Japan is located in Yokohama.

Samsung's reported move came as Japan plans to provide a fresh new round of nearly US$3 billion subsidy to chip manufacturing. Japan's Ministry of Economy, Trade, and Industry approved JPY476 billion for a manufacturing facility formed by TSMC, Sony, and Denso. According to Nikkei, Samsung may receive more than JPY10 billion in subsidy for the reported project.

Amid the US containment against China's chip development, the relationship between Japan and South Korea has begun improving. Japan ended its export curbs on South Korea for several key materials for chip manufacturing in March after it imposed the ban in July 2019. South Korean President Yoon Suk Yeol visited Tokyo in March, and his Japanese counterpart visited Seoul in early May. The duo is expected to meet again on the sidelines of the G7 summit in Hiroshima.