Samsung Invests in Japan Facility to Compete with Taiwan Semiconductor in Chip Packaging

Samsung Electronics is investing $170 million in a chip packaging R&D center in Yokohama, Japan, to compete with Taiwan Semiconductor Manufacturing Co. The global advanced chip packaging market is expected to grow from $34.5 billion in 2023 to $80 billion by 2032. Samsung will collaborate with Japanese suppliers and the University of Tokyo to advance its packaging capabilities. Taiwan Semiconductor leads the market with a 35.3% share, while Samsung holds 5.9%.

Samsung Electronics Co. is investing $170 million in an advanced chip packaging research and development center in Yokohama, Japan, according to semiconductor industry sources. The facility, slated to open in March 2027, aims to bolster Samsung's collaboration with Japanese semiconductor material and equipment suppliers, including Disco Corp., Namics Corp., and Rasonac Corp., as well as the University of Tokyo [1].

The City of Yokohama is providing a 2.5 billion yen subsidy for the launch of the research lab, which will be housed in the Leaf Minato Mirai building, a retail property converted into an R&D space. The property, located near an R&D hub within Yokohama’s Minato Mirai district, measures a total floor area of 47,710 square meters with 12 floors above ground and four below [1].

Advanced packaging technology connects graphic processing units, high-bandwidth memory (HBM), and other memory chips so they function as a single chip. It is considered a key process in manufacturing AI chips, enhancing their performance without having to shrink the nanometer through ultra-fine processing, which is technologically challenging. For Samsung, packaging is a core element of its ambitious turn-key chip manufacturing services, which combines foundry and packaging – areas in which Taiwan Semiconductor Manufacturing Co. (TSMC) maintains a clear lead [1].

Samsung's investment comes as the global advanced chip packaging market is projected to grow from $34.5 billion in 2023 to $80 billion by 2032, according to Counterpoint Research. TSMC leads the market with a 35.3% share, while Samsung holds a 5.9% share. Samsung recently clinched a $16.5 billion foundry contract for Tesla’s next-generation AI6 chips, a deal industry observers attribute to Samsung’s enhanced turn-key service capabilities [1].

The semiconductor filters market is also expected to grow significantly, reaching $3.07 billion by 2032 from $1.49 billion in 2024, with a CAGR of 9.56% during 2025-2032. This growth is driven by increasing semiconductor fabrication activity, standardization of cleanroom design, and large-scale government programs [2].

References:
[1] https://www.kedglobal.com/korean-chipmakers/newsView/ked202508130006
[2] https://www.globenewswire.com/news-release/2025/08/14/3133168/0/en/Semiconductor-Filters-Market-to-Surpass-USD-3-07-Billion-by-2032-Driven-by-Rising-Demand-for-High-Performance-Chips-in-5G-IoT-Advanced-Electronics-SNS-Insider.html