The world’s largest smartphone maker, Samsung could see a major trouble in it’s supply chain as trade row between Japan and South Korea could aim for the mobile giant.
The war time labour row between Japan and South Korea could have taken a turn for the worse as the former placing a tech export ban on South Korea while tightening export controls as well.
Japan has announced that from the fourth of July, it will slow down the export process by several months, snail process that will negatively impact the supply chain of Korea’s largest company,
Samsung Electronics as well as SK Hynix and LG Electronics.
The restrictions will be placed on smartphone display and other chips that are essential to the supply chains of Samsung and its Korean peers.
The materials to be restricted are fluorinated polyimide which is used in smartphone displays, as well as resist and high-purity hydrogen fluoride (HF), which is used as an etching gas in the making of semiconductors.
Japan said it was frustrated with South Korea’s refusal to intervene in a court ruling that required Japan’s Nippon Steel to pay compensation to war time forced labour claims.
“South Korea has failed to show any measures on the forced labor issue … and damaged mutual trust,” an official at the Ministry of Economy, Trade and Industry said in a media briefing.
Samsung has not commented on the matter but its shares could take a hit on the announcement.