Samsung to set up chip packaging research facility in Japan

South Korea's Samsung Electronics will invest around 40 billion yen ($280 million) over five years in a facility for research into advanced chip packaging it will set up in Japan, according to an announcement by the city of Yokohama.

Reuters reported in March that Samsung was looking at establishing a packaging facility in Kanagawa prefecture, where it already has a research and development centre, to deepen ties with Japanese makers of chipmaking equipment and materials.

Japan's industry ministry said it would provide Samsung subsidies worth up to 20 billion yen as it looks to support the revitalisation of domestic chip manufacturing.

Samsung's investment comes at a time of easing tensions between South Korea and Japan as the United States encourages allies to work together to counter China's growing technological prowess.

The chipmaker began bolstering its advanced chip packaging department last year. Companies are racing to develop advanced packaging techniques, which involve combining components in a single package to improve overall chip performance.

The Japanese facility will allow Samsung to strengthen its leadership in chips and partner with packaging-related companies based in Yokohama, the head of Samsung's chip business Kyung Kye-hyun said in the city's announcement.

($1=142.8900 yen)