Japanese-Korean trade conflict is bad for tehnologichna Saveliev | 16.07.2019
A small trade war between the countries moved from the verbal stage to a real fourth of July and it has already led to a number of complications.
As mentioned earlier, the beginning of the action was laid in the time when Japan has restricted the export to Korea
materials needed for the production of semiconductors and smartphones. And earlier Korea demanded that she
compensation for forced labor of Koreans during world war II. Analysts have already suggested that this case is not over.
It is understood that the pre-losing venture for all parties, as the conflict takes place against the backdrop of a trade war between China and the United States. Some companies have already fallen under the hand and twice
to be between two warring parties, no one is eager.
For example, as South Korea’s Samsung Electronics and Hynix K chose to err and to appeal to local producers to increase the supply of key chemical
substances for the manufacture of chips to prevent any disruptions in production. The company’s already too relied on Japan for most materials, only a small part was from China and
“Almost every day they are monitoring [conditions] to increase the number of deliveries from us,” confirmed an official representative of the foosung stock adding that the chip manufacturers have offered to conduct the tests
the quality of the product.
The representative of SK Hynix said that the company has been testing some South Korean hydrofluoric materials but did not provide additional information. It also became known that
SK Hynix President don Kim flew out on Tuesday to Japan, to discuss export controls with Japanese suppliers.
Japan and South Korea are the two major exporter of products such as chips and displays for smartphones. Trading reinforced the struggle between them can become bad news for the world
the technology industry and lead to higher prices. Rather, already cited.
Since the beginning of last week, spot prices of DRAM memory chips grew by 12% and this is a fairly impressive rise.
Thus, according to an analyst at research company Bernstein And Khe Cho, South Korean manufacturers are trying to insure not only essential components, but also increase
prices in negotiations with customers on contracts for the third quarter.
The chief economist of DBS Group Research, Taymūr Bag, outlining the situation, noted that Japanese and South Korean organizations have spent years creating a “complicated” supply chains and such
agreement will be difficult to alter, when you violate the trust between all participants.
“This development, which we are seeing now is a disturbing and useless for global economic sentiment. Let’s start with the fact that we already have the buzz around a trade war
between the US and the rest of the world,” he added. – “It won’t help anyone.”
It has been suggested that China will replace Japan as the main supplier for South Korea, but this is an unlikely outcome. You can’t just recreate and optimize all
existing supply chain, just tying them to another country.
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