Samsung Electronics Co. will build a new semiconductor chip development facility in Japan, Nikkei reported.

The plant will be in Yokohama where Samsung has an existing research and development site, the report said, without citing anyone.

The Korean firm will build a production line for a prototype chip, and the facility will cost over 30 billion yen ($221 million), with the Japanese government expected to provide more than 10 billion yen in subsidies, Nikkei said. Operations are targeted to begin in 2025, it reported.

Read more: South Korea Reinstates Japan on List of Countries That Receive Preferential Trade Treatment

Relations between Japan and South Korea are improving, with their leaders visiting each other’s nations and agreeing to cooperate on chips and security.

The Japanese government has also been signaling support for semiconductor and battery projects as it tries to bolster its supply chain for both key products. Japan will provide subsidies for eight battery and two semiconductor projects, Trade Minister Yasutoshi Nishimura said in April 2023.