South Korea’s biggest company Samsung is considering setting up a chip packaging test line in Japan. Reuters reported that Samsung wants to strengthen its advanced packaging business and forge closer ties with Japanese makers of semiconductor equipment and material. A recent visit by South Korea’s President to Japan and meeting with business leaders reflect the emerging close ties between US allies.
Samsung is probably looking to set up a facility in Kanagawa prefecture which will be advantageous as it is near Tokyo where Samsung already has an R&D center. Those who revealed this information to Reuters also mentioned that this investment will be in the tens of billions. Japan would be advantageous because of low labor costs and leading chip equipment and materials makers.
US, China move
On Friday, Japan made a statement that it would restrict the exports of 23 types of chip-making tools, stating that this move is aimed at preventing its advanced technology from being used for military purposes. Experts suggest that this move is in line with the US push to limit China’s rise as a superpower. In a broader context, allies are coming together to strengthen their ties and limit China’s global influence. Washington has signaled its interest in improving commercial diplomacy with both countries as part of its strategy to counter China.
