Samsung Opens AI Chip Packaging Lab in Yokohama With Japanese State Aid

Back-End Research Center Targets HBM and GPU Packaging Japan's Trade Ministry Covers More Than Half of 40 Billion Yen Investment Tokyo Electron Among Attendees as Samsung Works With 50 Japanese Firms

International|
|
By Park Min-joomj@sedaily.com
||
null - Seoul Economic Daily International News from South Korea

Samsung Electronics (005930) has opened an advanced chip packaging research center in Yokohama, Japan, seeking to speed up development and deepen exchanges in a country that holds a strong position in back-end packaging materials.

Samsung held an opening ceremony on the 8th in Yokohama for the Advanced Package Lab (APL), Japan's Nikkei reported. The facility, located in the Minato Mirai district, has a total floor area of about 6,600 square meters — slightly smaller than a soccer field — and includes a clean room where equipment can be operated under actual chip production conditions.

Samsung set up the Japanese research base as competition in AI chips intensifies and the need for cooperation with Japan, which excels in back-end technology, has grown. Chipmaking is divided into front-end processes that form circuits on wafers and back-end processes that assemble chips, and analysts say back-end work is emerging as a new axis of competition as circuit miniaturization approaches its physical limits. Demand for high-bandwidth memory (HBM) used in AI data centers has surged in particular, raising the importance of packaging technology that boosts performance by connecting multiple chips such as HBM and graphics processing units (GPUs). In advanced packaging, which is essential for artificial intelligence chips, Taiwan's foundry company TSMC ranks first globally, while South Korea's SK hynix (000660) leads in HBM. Samsung is expected to strengthen its competitiveness in both areas through closer cooperation with Japan.

Japan has built competitiveness in back-end materials on the strength of its chip materials industry. Sumitomo Bakelite holds about 40% of the global market for encapsulation materials, while Resonac and Mitsubishi Gas Chemical lead in substrate materials. Samsung works with more than 50 Japanese companies in AI chip back-end processes. Nikkei reported that having a research base in Japan will allow Samsung to evaluate new materials and complete prototyping locally, then apply only promising technologies to mass production lines in South Korea, accelerating research and development.

The Yokohama base will also receive large-scale subsidies from the Japanese government. Samsung has decided to invest 40 billion yen (about 348.9 billion won), of which 22.5 billion yen (196.2 billion won) will be provided by Japan's Ministry of Economy, Trade and Industry. A total of 95 South Korean and Japanese researchers will work at the site on tasks including back-end materials evaluation and mass production technology development.

Fifteen major Japanese chip-related companies, including Tokyo Electron and Ibiden, attended the opening ceremony. Jun Young-hyun, vice chairman of Samsung Electronics, said, "We will accelerate technology exchange between South Korea and Japan and become a driving force in growing the next-generation packaging industry together."

Companies in this story

Original reporting by Park Min-joo for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

Watch · Seoul Economic Daily

More →
3:08

AI KEY

Preview
Korean Corporate Intelligence HubKOSPI · KOSDAQ · 12 sectors

A live, cap-weighted view of every KOSPI and KOSDAQ sector, with same-day Korean reporting distilled by company — built for foreign investors, correspondents and analysts who need to scan Korea before the next session.

Korea Company Atlas

Preview
Market Ontology · The Feedback LoopKFTC 2025 · 92 groups · 121,954 articles

An English ontology of the Korean market — how companies, the media, the government and the National Assembly move each other in a loop. Korea's named controlling persons and designated business groups are a mechanism, not a risk to be priced blind.

SIGNAL

Now live
English Edition · Capital MarketsM&A · IPO · PE · Fund Flows

SIGNAL English Edition is live — Korea's deal desk reporting in English. M&A, IPOs, private equity and fund flows, covered daily for global institutional investors. Browse free; subscriber-only scoops at the 50% intro rate.