Samsung Semiconductor is intensifying collaboration with its Japanese partners to safeguard the stability of its semiconductor supply chain amid escalating geopolitical uncertainties. This strategic effort was underscored at the recent “Samsung Supplier Sustainability Summit” held in Tokyo at the end of May 2025, marking the second summit since its inception in Korea last September and the first to be hosted overseas. The event convened around 110 representatives from 40 major Japanese semiconductor equipment and materials firms—including Tokyo Electron, DISCO, Sumitomo Chemical, Daikin, and Kurita—alongside key industry figures such as Masahiko Hamajima, the Japan representative of the International Semiconductor Equipment and Materials Association (SEMI).
The summit served as a critical platform for Samsung Electronics to reinforce cooperative ties, especially in light of heightened supply chain fragilities triggered by ongoing global challenges. These include the ripple effects of the Russia-Ukraine conflict, turmoil in the Middle East, evolving U.S. tariff regulations, and semiconductor export controls tied to U.S.-China trade tensions. Samsung’s Vice President and Head of Semiconductor Purchasing, Park Jin-young, highlighted the urgent need for a stable and sustainable supply chain to support the semiconductor industry’s resilience.
A significant focus of the discussions was Samsung’s commitment to managing material scarcity and environmental impact by exploring advances in material recycling. Contemporary environmental regulations on carbon emission reductions pose additional risks to the semiconductor supply ecosystem, prompting in-depth engagement on topics such as net zero carbon targets, product carbon footprint (PCF) measurement, the management of per- and polyfluoroalkyl substances (PFAS), and water recycling initiatives within semiconductor manufacturing processes.
This engagement reflects a broader shift at Samsung towards embedding sustainability and ESG (Environmental, Social, and Governance) principles throughout its supply chain operations. The company’s sustainability management approach extends beyond enhancing supplier competitiveness; it encompasses commitments to labour rights, environmental protection, and health and safety standards, aiming to foster a responsible and durable supply chain ecosystem globally.
Samsung’s dedication to sustainability was earlier reaffirmed during SEMICON Korea in February 2025, where the company revealed progress in reducing greenhouse gas emissions through innovative process gas treatment technologies and energy transition projects. Samsung called on the semiconductor industry to collectively pursue carbon neutrality, signalling that environmental stewardship is integral to its long-term strategic outlook.
In an accompanying effort to cultivate industry-wide collaboration, Samsung also hosted a semiconductor subcommittee meeting in July 2023 with members of its Partner Association. The three-day forum focused on enhancing technical capabilities, ESG management, and reinforcing a cooperative rather than competitive supply chain ethos—echoing Samsung’s view that mutual partnership is essential for shared growth amid complex global market dynamics.
It is worth noting that while Samsung strengthens ties within Japan and promotes sustainability across its suppliers, the company is simultaneously expanding its semiconductor manufacturing footprint in the United States. A $40 billion investment in Texas aims to build an advanced chip packaging facility supporting next-generation AI chips, aligning with U.S. government objectives to bolster domestic semiconductor capabilities. However, Samsung faces competitive pressures, particularly in the U.S., where Taiwan’s TSMC has outpaced Samsung in attracting major contracts despite Samsung’s significant investment. Meanwhile, Samsung has increasingly turned to Chinese technology partners, with exports to China surging by 54 percent from 2023 to 2024, driven by AI chip component deals.
In this complex interplay of geopolitical, environmental, and market forces, Samsung Electronics is balancing multiple fronts: fostering sustainable, robust supply chains with trusted partners in Japan while expanding technologically advanced manufacturing capacity overseas and adapting its global business strategies in response to evolving competitive landscapes. The recent Tokyo summit reflects the company’s recognition that collaboration and sustainability are pivotal to navigating semiconductor supply chain challenges in an uncertain world.
Source: Noah Wire Services