Japan has presented highly attractive investment terms to South Korean memory chip giants, but Samsung Electronics and SK Hynix have yet to make any substantial investment decisions over many years.
According to a February 24 report from Trend Force, even though the cost of building a factory in Japan could be approximately half that of building in South Korea, and despite the availability of comprehensive policy support, both Samsung Electronics and SK Hynix are maintaining a wait-and-see stance due to domestic public opinion pressure and constraints from stakeholders.
SK Hynix recently officially denied a Nikkei report claiming it planned to invest 2 trillion yen to build a memory chip plant in Japan. According to Chosun Biz, Samsung and SK Hynix have received multiple invitations from the Japanese government to build factories over the past several years, but related proposals have consistently remained shelved.
This cautious approach contrasts sharply with the rapid expansion in Japan by other chipmakers like Taiwan Semiconductor Manufacturing and Micron. The Japanese government has provided subsidies of up to 476 billion yen for Taiwan Semiconductor Manufacturing's Kumamoto plant and support of up to 500 billion yen for Micron's Hiroshima HBM chip factory, highlighting its determination to revitalize its semiconductor industry.
Analysis suggests that the hesitation of the South Korean companies could affect their competitive position in the global semiconductor supply chain reshuffle, particularly in key areas like high-bandwidth memory, where competitors are accelerating production capacity deployment through their Japanese bases.
**Cost Advantages Overshadowed by Political Concerns**
According to Chosun Biz, citing a senior executive from Samsung Electronics' semiconductor division, the initial investment and total cost of ownership for building and operating a memory chip fab in Japan could be roughly half that of a domestic South Korean facility.
The Japanese government offers a "full support package," including tax breaks, infrastructure assistance, labor support, and connections with local equipment suppliers. In contrast, domestic factories in South Korea receive almost no substantive incentives and often incur additional costs.
However, Chosun Biz points out that the primary reasons for Samsung and SK Hynix delaying factory construction in Japan lie with domestic public sentiment and pressure from the government and local stakeholders.
Although a Japanese factory might be the safest choice from cost and long-term growth perspectives, the influence of these external constraints appears to outweigh the financial advantages.
According to SeDaily and Chosun Biz, executives from both companies have conducted preliminary reviews at the cost estimation level for building semiconductor plants in Japan over recent years, but discussions have never progressed to the stage of actual investment decisions or production line planning.
**International Competitors Accelerate Presence in Japan**
In contrast to the cautious stance of the South Korean memory chip giants, Taiwan Semiconductor Manufacturing and Micron are rapidly expanding their operations in Japan.
Chosun Biz reported that Japan's Ministry of Economy, Trade and Industry provided subsidies of up to 476 billion yen to JASM, the Japanese subsidiary of Taiwan Semiconductor Manufacturing, for its Kumamoto plant, with additional support subsequently provided for a second-phase investment.
According to the Yomiuri Shimbun, Taiwan Semiconductor Manufacturing has finalized plans to mass-produce Japan's first 3-nanometer chips at its Kumamoto facility, with total investment estimated at $17 billion (approximately 2.6 trillion yen).
Memory chipmaker Micron is also strengthening its footprint in Japan. As reported by Nikkei and Reuters at the end of 2025, Micron will invest 1.5 trillion yen ($9.6 billion) to build a new HBM chip factory in Hiroshima.
Construction is set to begin in May at the existing site, with shipments expected to start around 2028. Japan's Ministry of Economy, Trade and Industry is providing support of up to 500 billion yen for the project.
Chosun Biz notes that the Japanese government also continues to support the production base jointly operated by Western Digital and Kioxia.
In 2024, Western Digital announced that capital investment for the 8th and 9th generation 3D NAND flash memory at Kioxia's Yokkaichi (Mie Prefecture) and Kitakami (Iwate Prefecture) factories had been certified by Japan's Ministry of Economy, Trade and Industry, making it eligible for investment subsidies.
According to an official press release, the total support for the two plants includes up to 150 billion yen, with an additional 92.9 billion yen provided under a specific semiconductor production facility development plan approved in July 2022.