Samsung Considers Establishing Chip Test Line in Japan to Improve Strategic Ties
In recent years, Samsung has made significant progress in the Japanese smartphone market, surpassing dominant brands like Sharp and Sony. With this growing success, Samsung is reportedly considering Japan as a potential location for its semiconductor chip test line.
This move could further strengthen Samsung’s presence in the Japanese market and help it continue to compete with dominant players like Apple.
The test line would be Samsung’s first in Japan and would likely be established in Kanagawa Prefecture near Tokyo, where the company already has an R&D center. The investment would reportedly be in the tens of billions of yen.
Why Japan?
Japan is seen as an attractive location for Samsung due to its relatively low labour costs and the presence of leading chip equipment and materials makers, which could provide the South Korean company with access to a local ecosystem.
It is important to note that advanced packaging techniques are becoming increasingly important to manufacturers, as they offer the ability to place chips with different functions into a single package, improving overall capabilities while limiting the added cost of more advanced chips.
A three dimensional packaging approach could also help manufacturers improve chip performance even as they push the physical limits of how small a chip can get, considering how we have (kind of) reached the height beyond which it is almost impossible to push further.
US Trying to Counter China’s Rising Power in Chip Technology
Basically, the US is getting worried about China’s growing power in the tech industry, especially when it comes to making computer chips. They want their allies to team up and work together to try and stop China from getting too strong.
Japan is one of these allies and they just announced that they won’t be exporting certain tools that China uses to make advanced chips. It’s all part of a bigger plan to keep China in check and protect the interests of the US and its allies.
Improving Commercial Diplomacy
In March of this year, South Korean President Yoon Suk Yeol made a historic visit to Japan, marking the first time in 12 years that a South Korean leader had visited the country. During his trip, President Yoon met with influential business leaders from both nations and discussed the possibility of increasing cooperation in the tech industry, specifically regarding chip manufacturing.
Following this meeting, executives from both countries committed to working more closely together in the development of advanced chip technologies. The United States has also become involved in these discussions, with a focus on improving commercial diplomacy between the three nations. We now know why…
While all of this move points towards better strategic ties with Japan, it remains to be seen how the deal turns out, and how it affects competition in the tech industry. Till then, we will make sure to keep you updated on all developments as new information becomes available.
