Samsung invested US$280 million to build an advanced chip packaging factory in Japan and will receive subsidies of up to US$140 million

 


【Lansheng Technology News】According to an announcement from Yokohama City, Japan, Samsung Electronics will invest approximately 40 billion yen within five years to establish an advanced chip packaging research center in Japan. It is reported that Samsung Electronics will receive up to 20 billion yen in subsidies from the Japanese government to build a chip development factory near Tokyo.


Kyung Kye-hyun, head of Samsung's chip business, noted in an announcement in Yokohama that the Japanese factory will allow Samsung to strengthen its leadership in the chip field and cooperate with Yokohama-based packaging-related companies.


Samsung is committed to jointly developing chip packaging technology with its Japanese counterparts. As of October, Samsung said it had secured "many advanced packaging orders from multiple domestic and foreign high-performance computing customers."


Samsung unveiled the investment plan in May, which comes amid improving relations between South Korea and Japan. Four years ago, Japan and South Korea were locked in historical and trade disputes, and Japan once restricted the export of chip manufacturing materials to South Korea.


Japan's latest move is highly emblematic of Japan's determination to revive its chip industry, emerging from decades of underinvestment and stagnant growth. TSMC is building its first factory in Kumamoto, Japan, and Japanese chipmaker Rapidus plans to start mass production of chips in Hokkaido in 2027.


It was previously reported that Samsung is considering building a packaging factory in Japan's Kanagawa Prefecture, where Samsung already has a research and development center, to deepen ties with Japanese chip manufacturing equipment and materials manufacturers.


Companies are currently competing to develop advanced packaging technologies that integrate multiple components into a single package to improve the overall performance of the chip. Yole pointed out in the report that after the downturn in the first half of the year, the advanced packaging market will usher in strong growth of 23.8% in the third quarter. The market is expected to maintain steady growth this year and achieve a compound annual growth rate of 8.7% in the next five years. USD 43.9 billion in 2022 to USD 72.4 billion in 2028.


Yole emphasized that the semiconductor industry will usher in a challenging year in 2023, with the advanced packaging market expected to remain at a level of US$43 billion. Advanced packaging market revenue is expected to show slight growth in the 2.5D/3D, FCBGA and FO packaging segments, while other technology platforms may experience revenue declines due to weak demand in mobile and consumer markets.


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