Samsung Electronics will reportedly build a chip development facility in Yokohama as part of a highly symbolic initiative that will spur collaboration between the Japanese and South Korean chip industries, the media reported.

According to Nikkei Asia, the new facility will cost around $222 million and will be built in Yokohama, southwest of Tokyo, where the South Korean company already has a presence.

The development hub will be a separate unit.

Although the details remain unclear, Samsung plans to construct a production line for a prototype semiconductor chip device. The company will prioritize the backend of chip production.

The new facility will employ several hundred people and is expected to open in 2025.

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Moreover, the report said that the tech giant plans to capitalize on the semiconductor investment subsidies offered by the Japanese government, which are projected to exceed 10 billion yen (around $73.6 million).

The report further mentioned that, since Japan produces most of the materials and equipment required for manufacturing semiconductor chips, Samsung wants to collaborate closely with them to make a breakthrough in the chip production process.

Meanwhile, Samsung Electronics has reported its worst quarterly profit in 14 years, as global economic woes dented demand for consumer electronics and a chip glut battered its core business.

The world’s largest memory chip and smartphone maker reported an operating profit of 640.2 billion won ($478 million) during the January-March period, falling 95 percent from the 14.12 trillion won it posted a year ago.

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