14 DAY TRIAL // Samsung’s South Korean production is believed to have been slowed down due to a shortage of materials coming from Japan, due to trade sanctions between the two countries.
More recently, it’s been rumored that Samsung might look at other production facilities to deal with these struggles, including a potential increase of chip manufacturing at the Austin, Texas plant.
But according to the South Koreans, this is not the case, as Samsung not only that it doesn’t want to expand US operations, but is also considering building a new facility in its home market.
“The US plant was purported to supply chips for Apple, and expansion is possible if the foundry orders increase,” a company official was quoted as saying by Korea Herald. “But it’s not likely that the US expansion would be a solution to the Japanese export restrictions.”
Samsung currently operates a foundry facility to build chips for corporate customers, including Apple, in Texas. The foundry business was set up in 1996.
“Rather than increasing the capacity of the US plant, it is more likely that the company will build a hydrogen fluoride manufacturing facility in Korea,” the official added.
Samsung looking for more suppliers
On the other hand, Samsung is trying to find new suppliers that could help the company deal with the trade tensions between South Korea and Japan.
The production of some Samsung components, including chips and displays, is said to have been slowed down after Japanese started requesting temporary permits for exports of three chemicals that are essential in the manufacturing of such parts.
Several Samsung customers, including Apple and Microsoft, met with company officials this month to discuss the production challenges, especially as the output of several components could be impacted.
The manufacturing of Samsung’s own Galaxy Note 10 could also be affected. The device is projected to be unveiled in early August and then go on sale later the same month.