Samsung picks Japan for its new chip development facility

Samsung Electronics will invest millions of dollars to establish a new chip development facility in Japan. The company has recently replaced the Galaxy branding with Samsung. And the latest input suggests its hope for collaboration with the Japanese tech industry.

According to NikkeiAsia, Samsung Electronics will build a new chipset development facility in Yokohama in a highly symbolic initiative that is expected to spur collaboration between the chip industries of Japan and South Korea, which is expected to cost at least $222 million.

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The new facility will be built in Yokohama, southwest of Tokyo, home to the South Korean company’s existing facility, Samsung R&D Institute Japan. Both countries are crucial for the semiconductor industry and this new fab is going to benefit all.

The report doesn’t have specific details in addition to the construction of a production line for a prototype chip device. Samsung is looking to make use of subsidies offered by the Japanese government for semiconductor investment along with hiring several hundred people to begin operation in 2025.

The new facility will focus on the so-called “back end” of semiconductor production. In chip production, electric circuits are first created on a wafer during the front-end process, then the wafer is packaged into a final product during the back-end process.

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