SEOUL: A simmering diplomatic row with Japan is threatening South Korea's output of components that drive smartphones and computer displays, which analysts say could batter the global tech market and hike prices for consumers.
Between them the two firms account for almost two-thirds of the world chip market, according to the Hana Institute of Finance in Seoul, while they also supply tech titans including Apple, Huawei and Amazon."South Korea is the world leader when it comes to chip-making, and Japan is the world leader in the manufacturing of the key materials for chip-making," said Ahn Ki-hyun, vice-president of the Korea Semiconductor Industry Association.
Tech companies are already under pressure from a weakening global outlook, while the chip sector is particularly suffering from weak demand. "Because of the volume of chemicals required within the semiconductor manufacturing process, it is unlikely that the major chip suppliers will be able to find suitable quantities from suppliers outside of Japan," he said.
A Samsung official told AFP the firm was reviewing measures"to minimise further impact on our production" but declined to comment further. FILE PHOTO: The Samsung Galaxy Fold phone is shown on a screen at Samsung Electronics Co Ltd’s Unpacked event in San Francisco, California, US, February 20, 2019 In April, South Korea became the first country to launch nationwide 5G services, and in the same month Samsung rolled out its Galaxy S10 5G, the world's first available smartphone with the technology built into it.
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Source: The Straits Times - 🏆 8. / 63 Read more »