Samsung and Hynix Strengthen R&D Capacity in Japan's Core to Reclaim Semiconductor Crown

Samsung Electronics Establishes R&D Prototype Line in Japan
SK Hynix Operates Image Sensor R&D Center
"Need to Increase Overseas R&D Collaboration for Technological Competitiveness"

Samsung Electronics and SK Hynix are enhancing their semiconductor research and development (R&D) competitiveness near Tokyo, the capital of Japan. This is to secure technologies that will increase future revenue streams such as post-processing and sensors through synergy effects with Japan's core semiconductor materials, parts, and equipment (Sobu-jang) companies.

On the 15th, Nihon Keizai Shimbun (Nikkei) reported that Samsung Electronics will invest more than 30 billion yen to establish an advanced semiconductor prototype production line in Yokohama, near Tokyo. It also explained that the Japanese government may provide subsidies exceeding 10 billion yen, with the goal of starting operations in 2025.

Yokohama is home to Samsung Electronics Device Solutions Research Japan (DSRJ). This is a semiconductor research organization created by consolidating Samsung Electronics' research facilities scattered across locations such as Yokohama and Osaka. Regarding the line construction, Samsung Electronics stated that "nothing has been decided," but it appears they refrained from commenting due to negative public opinion given the nature of Korea-Japan relations. Nikkei explained, "Samsung Electronics intends to closely cooperate with Japanese Sobu-jang companies to find a breakthrough in production processes."

Inside view of the Samsung Electronics Pyeongtaek Campus line / Photo by Samsung Electronics

In the semiconductor industry, it is expected that Samsung Electronics will focus on developing new technologies by producing R&D prototypes here. There is also a forecast that they will seek to secure technological competitiveness by collaborating with Japanese Sobu-jang companies in the post-processing (packaging) field. Japan has strengths in related fields, owning the top two companies in the dicing equipment market used in post-processing: Disco (1st) and Tokyo Seimitsu (2nd). Packaging is a technology that stacks or bundles multiple semiconductors to enhance performance and has recently been recognized as an alternative to overcome the limits of fine processes.

SK Hynix operates an R&D center along with its Japanese corporate headquarters in Tokyo. The center was established in 2019. At that time, the company stated that it was "to fully utilize Japan's diverse CIS resources." CIS refers to system semiconductors called 'CMOS Image Sensors.' They are used to convert visual information entering through camera lenses into digital signals, functioning like the retina in the human eye.

Japan boasts more than 50% market share in the CIS market with Sony and has a wide range of related Sobu-jang companies. SK Hynix regards the CIS business as one of the keys to overcoming the heavy reliance on the memory business, which accounts for 90% of total sales. Recently, to introduce high value-added products, the domestic CIS division has been transformed into an R&D-focused unit, and during the first half of the year’s new recruitment, they sought sensor-related personnel in R&D process and device sectors, steadily advancing the related business.

Experts believe that utilizing overseas resources during the R&D process can help enhance domestic semiconductor competitiveness. Professor Jeong Yeon-seung of Dankook University (Department of Business Administration) said at the joint academic conference of five major societies held on the 15th that to secure advanced technology, "it is necessary to collaborate extensively in R&D with excellent overseas companies (from the US, Japan, Europe, etc.)." A semiconductor industry insider also explained, "Since there are many Sobu-jang companies in Japan, communication and cooperation can greatly benefit the business."

If domestic semiconductor companies aim for synergy effects in Japan for future revenue streams, Japan is strengthening its weak link in manufacturing to regain its past status as a semiconductor powerhouse. A representative example is attracting production facilities of Taiwan foundry company TSMC and US memory company Micron to Japan by injecting large-scale subsidies. Japan also promised 330 billion yen in support to Rapidus, a joint venture established last year by major Japanese companies including Toyota Motor, Kioxia, and Sony.

Meanwhile, in Japan, the possibility of a merger between Kioxia and US-based Western Digital is emerging. Reuters reported on the 15th (local time) that as the merger process accelerates, discussions are underway to divide the merged entity’s shares with Kioxia holding 43% and Western Digital 37%. In this case, the landscape of the NAND flash market, where more than five players compete, could change. As of the fourth quarter of last year, Samsung Electronics was the market leader in NAND, and combining the shares of Kioxia (2nd) and Western Digital (4th) would total 34.1%, surpassing Samsung Electronics’ 33.9%.

This content was produced with the assistance of AI translation services.