Samsung Electronics is reportedly investing JPY25 billion (approx. US$170 million) to set up an advanced packaging research institute in Yokohama and acquire a major office tower in the city's Minato Mirai 21 district. Industry analysts say the move directly challenges TSMC's lead in cutting-edge packaging and reflects a strategic push to leverage Japan's strengths in materials, components, and semiconductor equipment.
According to South Korea's Korea Economic Daily, Samsung's Device Solutions unit will build the facility to open by March 2027, recruiting local R&D talent to support the ramp-up. This marks the company's first concrete step since announcing its Japan packaging investment plan in December 2023. Yokohama has designated Samsung as a "Corporate Location Promotion Ordinance Certified Business," unlocking a JPY2.5 billion subsidy.
The company has already purchased the 48,000-square-meter Leaf Minato-mirai building, a 12-story structure with four basement levels, and plans to house the research institute and pilot production equipment on select floors. This marks Samsung's first large-scale property acquisition in Japan since it sold a majority stake in its Tokyo Roppongi headquarters in 2015.
Closing the gap with TSMC
Counterpoint Research data shows TSMC's combined share of wafer foundry, packaging, and testing rose from 29.4% in the first quarter of 2024 to 35.3% in the same period in 2025, fueled by its near-total capture of both foundry and packaging work for AI accelerators integrating high-bandwidth memory (HBM) and GPUs. ASE Technology ranks third with a 6.2% share, behind Intel.
TSMC established a packaging research base at the University of Tokyo in 2019 and has used its foundry dominance to push aggressively into 2.5D and 3D packaging. Samsung is the only South Korean company seen as a serious competitor at the high end, providing one-stop foundry and packaging services, though it still lags TSMC in capacity and technical sophistication.
Tapping Japan's supply chain strengths
Samsung's Yokohama center will work closely with the University of Tokyo and Japanese industry leaders such as Disco, a chip-cutting equipment maker, as well as materials specialists Namics and Resonac. Japan plays a critical role in the global packaging supply chain, and these partnerships could help Samsung speed up its technology catch-up.
The University of Tokyo is only a 30-minute trip from Yokohama, and its engineering expertise has already led TSMC to pursue joint research there. Samsung plans to recruit large numbers of the university's master's and doctoral graduates to strengthen its R&D team as the advanced packaging market, valued at US$34.5 billion in 2023, is expected to more than double to US$80 billion by 2032.
Article edited by Jack Wu
