The biggest memory-chip maker and smartphones manufacturer of the world, Tech giant; Samsung Electronics Co, stated yesterday that it is on the outlook for alternatives to the elements it was previously supplied by the Japanese providers. The crucial materials were blocked due to a bitter trade dispute between Tokyo and Seoul.
The government of Japan imposed tighter restrictions during the trade row on key materials’ export and also removed South Korea from its so-called white lists of trustworthy trade partners.
Photoresists and hydrogen Fluoride gas, two of the main chemicals targeted, essential for the manufacturing of memory chips, while fluorinated polyimide, the 3rd chemical, is used for the manufacturing of smartphone displays and high-spec TV screens, inclusive of wildly anticipated folding models from Samsung.
The move of Tokyo of tightening export curbs has also raised international concerns, as well as, raised complaints by the inside Japanese firms due to the effect on global supply chains and likely price hikes for consumers all over the world.
One of the Samsung Spokesperson told the reporter that the company was seeking new ways to diversify supplies of components and materials where it was dependent heavily on Japanese imports.
It has been warned by the analysts that the restrictions, as well as, the reduction in the availability of the crucial materials would significantly hinder chip producers.
According to Taipei-based market intelligence company ‘TrendForce Corp’, there is nearly a share of 60 to 70 percent of Japan in the global hydrogen fluoride market, which could make it hard for South Korean firms to find alternatives elsewhere.
But, the Samsung Spokesperson completely denied a South Korean media report which stated that the company had decided to find a replacement for all the nearly 220 Japanese materials and chemicals it uses for the production of the chip with South Korean or abroad products.