14 DAY TRIAL // A change in the way three critical materials for the production of smartphones are being exported from Japan to South Korea cause concerns for the world’s largest device manufacturers.
Apple, Microsoft, Google, and Amazon officials traveled to South Korea to discuss the possible production struggles with Samsung, which is in charge of building their memory chips and panels.
These companies are worried that a shortage on the chemicals used for making memory chips and OLED panels could impact their inventory, according to a report from The Korea Herald.
Earlier this month, Japan decided to request a 90-day permit process to all companies that purchase three critical chemicals for the production of phone parts. Because the approval is mandatory, Samsung is believed to have already slowed down operations at some facilities, according to people familiar with the matter.
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While details are missing for now, Japan doesn’t seem to be willing to give up on requesting the 90-day permit for exports. The move comes as a response to a decision in South Korea that required Nippon Steel, one of the largest companies in Japan, to pay compensation to World War II victims for forced labor.
None of the companies that met with Samsung officials provided any statements on these discussions, but on the other hand, the trade restrictions come at a time when several of them are getting ready for the launch of new-generation products.
Apple is projected to take the wraps off a new iPhone generation in September, whereas Google should unveil a new Pixel smartphone later in the fall. Samsung itself will launch the Galaxy Note 10 next month, with the Galaxy S11 to follow in early 2020.
The Note 10 could be one of the models whose production may be impacted by the South Korea – Japan trade tension, according to earlier reports.