Samsung is having a serious trade late between Japan and South Korea. It imports some key materials from Japan and with strict export curbs, Samsung's business faces an immense challenge. Samsung's top man recently took an extended trip to Japan as executives try to find a way forward.
The company sources materials that are crucial for display and semiconductor production. These activities contribute to the bulk of Samsung's profits so it's understandably worried. South Korea's South African company to stockpile Japanese parts as export curbs begin to bite.
No end in sight for bitter trade dispute
Samsung has reportedly sent letters to its local production partners for consumer electronics, TVs and smartphones. It calls on the topic of various Japanese components by the end of this month or August 15 at best. Japan has already applied stricter export rules on three key materials for chips and displays. It is now likely to remove South Korea from a list of trusted buyers which would impact the supply of other important materials as well. A decision on the white list is expected to come on July 24.
The company is also working with suppliers in China, Taiwan and its home country to source materials for chip and display production. Samsung is already reading the pinch because of export curbs on materials for chips and displays. It could be in real trouble if Japan's additional export regulations are consumer electronics, TVs and smartphones as well.
“If South Korea is excluded from the white list, it is likely that Japanese companies want to go for South Korea,” Samsung said in the letters. It is not possible to make any sort of disruption by calling it on a local partner.
Samsung promises that it will pay for the materials and thus reimburse the companies for any supplies that remain unused after the proposed deadline.
Japan's new export restrictions appeared first on SamMobile.
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