TOKYO: Japan's curbs on exports of high-tech materials to South Korea could backfire in the long run, eroding its dominance over a key link in the ...
TOKYO: Japan's curbs on exports of high-tech materials to South Korea could backfire in the long run, eroding its dominance over a key link in the global chip supply chain, suppliers and experts say.
Industry experts, however, note it would take time for South Korean firms to move up the value chain as the three high-tech materials are not easy to replicate. Seoul has already pledged to subsidise the domestic chip supply chain to accelerate the buildup of knowledge needed for firms to catch up in more advanced fields.
In photoresists, Samsung is trying to curb its reliance on Japan for advanced material, although sources say it faces high hurdles. The company, however, uses material from local supplier Dongjin Semichem for photoresists used in chips with less finer circuit patterns, Japanese supply chain sources said.
But in the wake of the latest curbs, prompted by a decades-old row between the Asian nations over compensations for forced South Korean labourers at Japanese firms during World War Two, suppliers in Japan are having to deal with repercussions beyond the three restricted materials, industry sources said.
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