Samsung to build $222 mn chip development facility in Japan

SEOUL: Samsung Electronics will reportedly build a chip development facility in Yokohama as part of a highly symbolic initiative that will spur collaboration between the Japanese and South Korean chip industries, the media reported.

According to Nikkei Asia, the new facility will cost around $222 million and will be built in Yokohama, southwest of Tokyo, where the South Korean company already has a presence.

The development hub will be a separate unit.

Although the details remain unclear, Samsung plans to construct a production line for a prototype semiconductor chip device. The company will prioritise the backend of chip production.

The new facility will employ several hundred people and is expected to open in 2025.

Moreover, the report said that the tech giant plans to capitalise on the semiconductor investment subsidies offered by the Japanese government, which are projected to exceed 10 billion yen (around $73.6 million).

The report further mentioned that, since Japan produces most of the materials and equipment required for manufacturing semiconductor chips, Samsung wants to collaborate closely with them to make a breakthrough in the chip production process.

Meanwhile, Samsung Electronics has reported its worst quarterly profit in 14 years, as global economic woes dented demand for consumer electronics and a chip glut battered its core business.

The world's largest memory chip and smartphone maker reported an operating profit of 640.2 billion won ($478 million) during the January-March period, falling 95 per cent from the 14.12 trillion won it posted a year ago.