{"id":2203515,"date":"2024-01-17T18:09:27","date_gmt":"2024-01-17T09:09:27","guid":{"rendered":"https:\/\/koreapro.org\/?p=2203515"},"modified":"2024-01-18T19:56:16","modified_gmt":"2024-01-18T10:56:16","slug":"why-south-korean-semiconductor-firms-face-opportunities-and-pitfalls-in-japan","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/01\/why-south-korean-semiconductor-firms-face-opportunities-and-pitfalls-in-japan\/","title":{"rendered":"Why South Korean semiconductor firms face opportunities and pitfalls in Japan"},"content":{"rendered":"
On Dec. 21, Japanese Prime Minister Fumio Kishida announced that Tokyo would collaborate with Samsung Electronics, South Korea\u2019s largest tech firm, to establish a semiconductor research facility in Yokohama, a venture valued at $281 million of which Japan will fund up to $135.7 million.\u00a0<\/span><\/p>\n While this initiative represents Japan\u2019s <\/span>commitment<\/span><\/a> to bolstering its supply chains and economic security, it simultaneously presents a spectrum of operational and strategic risks for South Korean companies like Samsung entering the Japanese market.<\/span><\/p>\n This collaboration reflects a notable step in Japan\u2019s engagement with foreign technology firms, as seen in its support for Taiwan Semiconductor Manufacturing Company (TSMC) and its semiconductor fabrication plant in Kumamoto, a province on the western edge of Japan.<\/span><\/p>\n However, the policy has prompted <\/span>internal discussions<\/span><\/a> in Tokyo about the strategic <\/span>direction of Japan\u2019s semiconductor industry<\/span><\/a>, particularly in the context of competing with global players and addressing past shortcomings.<\/span><\/p>\n Further, Tokyo\u2019s openness to foreign investment brings with it a set of challenges rooted in the complex dynamics of regional politics and the evolving landscape of economic policies. For South Korean firms like Samsung Electronics, entering the Japanese market entails navigating these challenges, while Japan\u2019s evolving policies and market conditions could pose challenges in the long term.<\/span><\/p>\n LATENT RISKS<\/b><\/p>\n Tokyo\u2019s decision to collaborate with Samsung Electronics is part of a broader narrative involving significant geopolitical shifts and strategic alignments.<\/span><\/p>\n The establishment of the \u201cFab 4\u201d or \u201cChip 4\u201d alliance by the U.S., which includes South Korea, Japan, and Taiwan, signifies a concerted effort to create a self-sufficient loop in semiconductor production, aiming to reduce reliance on Chinese imports. Further, major global chipmakers committed to multi-billion-dollar investments in Japan during the Hiroshima G7 Summit in May, a decision that excluded Chinese firms.<\/span><\/p>\n