Samsung is apparently planning on setting up a new chip packaging test line in Japan. The move from the company is likely a way to deepen its cooperation in the region. The news arrives from five sources close to the matter.

The five people added that the South Korean tech giant is looking to boost its advanced packaging operation whilst building stronger connections with the semiconductor equipment and materials maker in Japan. Furthermore, it would also be the first such test line in the Asian country for Samsung, which is also the world’s largest memory chips manufacturer. This news also arrives as the United States seeks to work together with its allies to counter China’s advancements in semiconductor technology.

Samsung

Back on Friday, Japan said that it would restrict exports of 23 types of chip making tools, which aligns its technology trade controls with the US’ effort to stop China from building advanced chips. The tech giant is also looking to establish the facility in the Kanagawa prefecture that is near Tokyo. Interestingly, this is also where Samsung has a research and development center.

Unfortunately, finer details regarding the matter like the timeline and investment are still unclear. Although, the total investment would likely be in tens of billions of yens or near 75 million US Dollars. The brand is looking to deepen its relations with the Japanese companies, while also looking at the region for its relatively low labor cost and presence of these chip equipment makers. Simply put, the region offers Samsung access to a local “ecosystem”, as per one of the sources.

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