Aggravation of disagreements between South Korea and Japan against the backdrop of Seoul's demands for compensation for forced labor of citizens of the country in wartime and introduced in response from Japan is forcing Korean manufacturers to look for alternative ways out of the crisis.
According to South Korean media, the head of Samsung Lee Jae-yong (Lee Jae-yong Yu in the photo below), who returned on Sunday from to Japan, where he tried to solve the problems that had arisen with local businessmen, immediately held a meeting. At it, he ordered the leadership of the semiconductor and display divisions of the conglomerate to prepare a contingency plan in case the trade dispute between South Korea and Japan drags on.
Since July 4, Japanese companies have been prohibited from exporting photoresist, hydrogen fluoride and fluorinated polyimides used in chips and displays to South Korea without government permission.
Since Japanese companies are the main suppliers of these materials to South Korea, these restrictions could negatively affect the production of chips and displays by Samsung Electronics, as well as South Korean manufacturers such as SK Hynix and LG Display.
Samsung is reportedly currently looking to diversify supplies as well as develop local capacity, suggesting the trade dispute is likely to drag on.
The South Korean conglomerate reportedly secured supplies from the United States, China and Taiwan as an emergency measure to continue production, but long-term risks remain high for the company.
Source: 3dnews.ru