Samsung to open $200M microchip plant in Japan

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Samsung will build a new $222-million facility in Yokohama for the development of integrated circuit (IC) packaging, it has been reported.

The South Korean electronics giant is believed to be  looking for a subsidy from the Japanese government of  $74 million to support the project, according to the report in Electronics Weekly.

Integrated circuits are the wafers that make up semiconductors, and IC packaging refers to the material that contains the semiconductor device to protect the circuits from corrosion or physical damage

According to Electronics Weekly, Japan is pushing to be seen as a serious player in advanced semiconductor process technology and the Samsung factory announcement comes after the Chip 4 initiative, a collaboration between the US, Taiwan, Korea and Japan on semiconductor technology development aimed at locking China out of the global chip supply chain.

The move also comes as Japan tries to improve relations with South Korea, with whom it has traditionally had a hostile relationship. South Korea, meanwhile, relies on Japan as an important source of chip manufacturing equipment and materials.

According to the report, Samsung’s new Yokohama facility will have  several hundred staff and plans to begin operating in 2025.