[News] Japan Reportedly Offers Half-Cost Fabs and Full Subsidies, Yet Samsung and SK hynix Stay Cautious

Amid market speculation that SK hynix is considering a ¥2 trillion (about KRW 18 trillion) investment to build a memory fab in Japan, the company has officially denied the claim. However, a separate report by Chosun Biz indicates that both Samsung and SK hynix have repeatedly received proposals from Japan to establish semiconductor fabs, though the offers have reportedly remained on hold for years.

As reported by SeDaily, SK dismissed a Nikkei report that suggested plans to establish a memory semiconductor production base in Japan. Chosun Biz, on the other hand, adds that senior executives at Samsung Electronics and SK hynix have conducted preliminary, cost-estimate-level reviews of potential semiconductor fab construction in Japan over the past several years, but discussions never advanced to an actual investment decision or production-line planning stage.

Interestingly, according to Chosun Biz, the South Korean memory giants’ reluctance is likely not about cost. Citing a senior Samsung Electronics semiconductor executive, the report notes that building and running a memory fab in Japan could cost roughly half as much as in Korea in terms of upfront investment and total cost of ownership (TCO).

While domestic fabs offer few meaningful incentives and often incur extra costs, Japan has reportedly offered a “full-package” support scheme — including tax breaks, infrastructure aid, workforce assistance, and links to local equipment suppliers — to attract semiconductor investment, Chosun Biz explains.

Chosun Biz adds that Samsung and SK hynix are said to be holding off on building fabs in Japan due to domestic public sentiment and pressure from government and local stakeholders. Although a Japanese facility might be the safest choice from a cost and long-term growth perspective, these external constraints appear to outweigh the financial advantages, as per the report.

Global Chipmakers Lead Japan Push as Korean Giants Stay Cautious

Unlike the cautious approach of South Korea’s memory giants, semiconductor players from Taiwan and the U.S. are rapidly expanding in Japan. Chosun Biz reports that Japan’s METI offered up to ¥476 billion to TSMC’s Japanese subsidiary, JASM, for its Kumamoto fab, later adding more support for a second investment. According to Yomiuri Shimbun, TSMC has finalized plans to mass-produce Japan’s first 3nm chips at Kumamoto, with total investment expected to reach $17 billion (around ¥2.6 trillion).

On the other hand, U.S. memory firms are strengthening their presence in Japan. Nikkei and Reuters reported in late 2025 that Micron will invest ¥1.5 trillion ($9.6 billion) to build a new HBM chip plant in Hiroshima. Construction is set to begin May at an existing site, with shipments expected around 2028. Notably, Japan’s Ministry of Economy, Trade and Industry is backing the project with up to ¥500 billion in support, the reports said.

Chosun Biz notes that government backing from Japan has likewise continued for the joint production base operated by US-based Western Digital and Kioxia. In 2024, WD announced that capital investments for 8th- and 9th-generation 3D flash memory at Kioxia’s Yokkaichi (Mie) and Kitakami (Iwate) factories were certified by Japan’s Ministry of Economy, Trade and Industry under the Act on the Promotion of Specified Advanced ICT Systems, making them eligible for investment subsidies.

The total support, as per the press release, includes up to ¥150 billion for the two plants, with an additional ¥92.9 billion provided under the Specific Semiconductor Production Facility Development Plan approved in July 2022.

Read more

• [News] Second-Tier No More: Kioxia and SanDisk Balance Alliance and Rivalry in AI NAND Race
• [News] TSMC’s Kumamoto 3nm Upgrade Highlights Overseas Output Reportedly Hitting 20% by 2028
• [News] Samsung, SK hynix and Micron Reportedly Rein In Orders to Curb Hoarding as Supply Tightness Persists

(Photo credit: SK hynix)