The new export regulations is the effect of the current strained relationship between Japan and South Korea. (Image via: InsideSources)

Japan Tightens Regulations of Tech Materials Export to South Korea

Kirana Chandra Mumpuni Budiana
Market & Investment
Export Import
Jul 01, 2019
2659
Japan tightens the export regulations for several chemicals used in chip and smartphone production. The materials that will be restricted are fluorinated polyimide which is used in smartphone displays, as well as resist and high-purity hydrogen fluoride (HF). Resist and HF are the significant materials in producing semiconductors. The market shares estimation of Japan suppliers for both product is 90 percent.

Japan’s Ministry of Economy, Trade and Industry will apply the new regulations on July 4 2019. Under these export rules, Japanese suppliers will need to apply for approval. Each contract which sells specific chemicals to South Korean buyers need to fulfill the requirement. The approval requirement would lengthen the export process. The process will disrupt South Korean production. It also would affect Japanese suppliers to these companies.

These export regulations come after South Korean courts ordered Japanese firms to compensate people forced into wartime labour. Although, Japan said that the issue was resolved when the countries resumed diplomatic relations decades ago. The ministry gave statement that the export control system is built based on international relations of trust, but the relations of trust with South Korea have been significantly harmed.

Source: https://www.channelnewsasia.com/news/asia/japan-south-korea-chip-smartphone-materials-exports-regulation-11676362

Japan , Korea , Tech , Export , Economy , Trade , Industry , market