Japan recently removed South Korea from a White List of countries that were granted expedited export procedures. The move meant that companies exporting raw materials critical for semiconductor manufacture to South Korea would now have to wait for 90 days before their exports are cleared. The negative development is said to have affected Samsung‘s Galaxy Note 10 release but apparently, the company is taking measures to ensure there is no shortage of raw materials for future productions.

Reports from South Korea indicate that the tech giant has given suppliers for SET products such as home appliances and smartphones the go-ahead to secure an inventory of Japanese materials and components. The inventory will be stockpiled at Samsung’s expense, a formal letter the company reportedly sent out to manufacturers stated. The letter is said to have requested the suppliers to stockpile at least 90 days’ worth of parts and materials by August 15 at the latest. The letter also added that Samsung will shoulder all incurred and future costs.

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The move is seen by market watchers as part of efforts by the global tech leader to placate the effect of a prolonged trade war between South Korea and Japan. “The Japanese government’s export restrictions on semiconductor materials may be widened,” said the letter, indicating there are concerns of the possibility of the trade war escalating.

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(source)

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