Japan's government wants to help Samsung build its chip factory

Samsung could be planning on building a new semiconductor manufacturing facility in Japan. The facility would include Samsung's first chip packaging test line in the country, and a new report says that the Japanese government is willing to offer subsidies worth roughly 15 billion yen ($110 million) to the Korean tech giant, should the latter decide to proceed with its construction plans.

Contrary to previous reports, Samsung hasn't yet decided to build this semiconductor plant in Japan. Construction hasn't begun, and instead of the rumored cost of JPY 300 billion, Reuters says that Samsung's facility would cost roughly 40 billion yen to set up, which would translate to around $292 million at today's conversion rate.

The Japanese government is willing to cover roughly 1/3 of Samsung's costs

If Samsung agrees to build the chip facility, the Japanese government would be willing to cover a little over a third of that cost, i.e., JPY 15 billion ($110 million). However, Samsung says nothing has been set in stone, so whether or not the company will take advantage of these subsidies is to be decided.

Assuming Samsung proceeds to build its chip plant in Japan, the factory would be located near the company's existing R&D center in Yokohama (seen in the photo above). And if the facility gets constructed, Samsung would supposedly benefit from closer relations with local chip material suppliers and equipment manufacturers.

Mihai Matei - Senior Editor

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First Samsung device: SGH-A800

Mihai is a blogger and column writer at SamMobile. His first Samsung phone was an A800 which took a lot of beating, and a part of him still misses the novelty of the clamshell design. In his free time, he enjoys watching shows, documentaries, and stand-up comedy; listening to music, taking walks, and occasionally playing old(er) video games.

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