Samsung stockpiles parts because of concerns about Japan-Korea tension

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Samsung is seeking to secure components and materials produced by Japan, preparing for Tokyo to expand export restrictions.
Samsung stockpiles parts because of concerns about Japan-Korea tension
Samsung will take about 2 - 3 months to determine if the current quality level can be maintained if replacing other raw materials. Photo: Getty Images

The Korean tech giant has sent letters to local partners in the production of TVs, consumer electronics and smartphones (smartphones), demanding to ensure a range of components from Japan at the end of the month. 7 or at the latest in mid-August, Yonhap reported.

The Japanese side began to apply the export rules to the Korean market more closely for the three necessary materials in chip and screen manufacturing from early July.

Tokyo is also considering pushing Korea out of the list of trusted buyers (white books). This move will affect the supply of other necessary materials to produce smartphones, TVs, chemicals and other industrial materials.

The Japanese government is expected to announce the decision after the review process ends on July 24.

"If Korea is removed from the white list, Japanese businesses will most likely be required to agree to all materials to Korea," Yonhap quoted Samsung’s letter.

Accordingly, Samsung is committed to incurring additional costs for securing storage and compensating suppliers if these materials are not used after the proposed time.

According to Nikkei, Samsung is also testing hydrogen fluoride from businesses outside Japan such as China, Taiwan or right in Korea.

The world’s leading smartphone manufacturer has sent senior leaders to Taiwan and China to seek alternative suppliers since Japan announced tightening.

It is expected that Samsung will take about 2-3 months to determine if the current quality level can be maintained if replacing other raw materials.

Hydro fluoride is used in the removal of excess materials around circuit patterns on silicon sheets.

Production of advanced semiconductors requires pure gas up to 99.999% and Japan is currently leading the world in developing the technology needed to reach this level of purity. It is also the country that controls 80% to 90% of the market.

Conflicts between the two economic powers of the world are said to have originated from the Korean court ruling to require Japanese steel firm Nippon Steel to compensate for the workers previously forced to work for business. This industry during the period of Japanese domination of the Korean peninsula between 1910-1945.

The Tokyo side became strained because of this ruling, arguing that the forced labor problem was fully resolved in 1965 when the two countries resumed diplomatic relations.

Japan subsequently announced a tightening of exports for three key materials in high-end consumer electronics products and said that these measures were not related to disagreements over labor issues. To ensure that Japanese precious materials are not sold to unsuitable subjects.

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