Japan to subsidize Samsung's semiconductor facility up to $140M

TOKYO

Japan announced on Thursday that it will subsidize Samsung Electronics' advanced semiconductor R&D facility up to 20 billion yen ($140 million).

Prime Minister Fumio Kishida met with the managers of public-private sector companies manufacturing electronic parts, including semiconductors, in the capital Tokyo.

Saito Ken, economy, trade and industry minister, Masakazu Tokura, president of the Japan Business Federation (Keidanren), and private sector executives attended the meeting.

Speaking at the meeting, Kishida said: "Global investors attach importance to investing in Japan. We welcome investments that will create attractive employment throughout the country."

After the meeting, Tokura announced that the in-country branch of South Korea-based Samsung Electronics will be subsidized up to 20 billion yen ($140 million) for an advanced semiconductor research and development (R&D) facility.

The South Korean manufacturer will establish an R&D facility in the Minato Mirai district of Yokohama, south of Tokyo.

The company will develop technology for advanced semiconductor production over the next five years in cooperation with semiconductor material and chip equipment manufacturers.

Amid technological competition between the US and China, Japan aims to strengthen its critical semiconductor ecosystem with the investment of overseas manufacturers.

*Writing by Gokhan Ergocun from Istanbul