Samsung Investing in Japan: Updated Feb. 27, 2024

 

Samsung to receive $140 million government subsidy for chip facility in Japan

Article Source:  https://mainichi.jp/english/articles/20231221/p2g/00m/0bu/040000c

Ideas:

Samsung maybe sees the writing on the wall and needs to expand outside of South Korea and the US, where it also expanding, to improve it supply chain options.

Japan now has added  TSMC from Taiwan and now Samsung from South Korea, as Japan knows its fallen behind in the chip market race.

Before the pandemic, maybe there was no need to bolster supply chains, but the pandemic along with supply shortages, including chips shortages, has forced countries to begin to improve their supply chains in their home countries or countries that proved needed subsidies.

Japan, unfortunately, is behind both Taiwan and South Korea, but its now making an all ouu effort to boost its chip situation.

Companies might be interested in Japan, but Japan has to make it doable for countries with subsidies, tax benefits, including maybe land to build plants and facilities.

In the past, Japan has not really been the best option for investments, as Singapore was always a major player willing to do whatever to get companies to invest in Singapore.

At the same time TSMC, is beginning to invest more in Japan, due to the increased China/Taiwan situation as they are thinking about the future as a way to avoid any possible shutdowns in Taiwan.

And of course countries are in a competition to improve their supply chains as the US adding more plants, including Samsung in Texas. 

Japan, again, as a long way to go to catch up, but it headed in the right direction, and might take a few years to bolster its supply chain challenges.

The fact that the new semiconductor investments are in areas not near the Tokyo area shows that Japan is trying to diversify its manufacturing and supply chain sectors outside of the Tokyo area.

The more Japan can diversify it manufacturing outside of Japan, means Japan will maybe have a more balanced economy in the future.

For example most or many of the car manufacturing is in the Nagoya area., which is the center of Japan, while Tokyo seems to be the financial center or Japan, and the Osaka area has been considered, including Nagoya, the workhorse area of Japan.

Have a nice day and be safe!