The impact of ongoing trade disputes between South Korea and Japan is already being felt here, as the technology giant Samsung Electronics is slowing chip production for its next flagship smartphone, the Galaxy Note 10.
“Samsung has cut its target production of Exynos, the mobile processor used for Galaxy Note 10, by 10 percent this month,” local JTBC broadcaster quoted Samsung as saying. “The missing 10 percent will be produced next month.”
Samsung declined the confirmation, but market observers said the recent trade feud may have forced the technology giant to adjust the production schedule, fearing that at present the Japanese government no longer has chemical products — fluoridated polyimide, hydrogen fluoride, and resists are considered necessary for chip production and displays.
Korean chip makers, including Samsung and SK Hynix, rely on Japanese companies, such as Sumitomo Chemical, for these high-tech materials.
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Fluorinated polyimide is used to create displays of smartphones, and hydrogen fluoride and resists are used for etching chips and printed circuit boards.
Samsung, as a rule, begins to exploit its production capacity, including chips and displays, a month before the launch of the flagship model and gradually increases the production of smartphones, working with a large number of component suppliers.
The company uses its own Exynos and Snapdragon Qualcomm mobile processor to power its smartphones, including the Galaxy S and Note.
It is expected that the smartphone Galaxy Note 10 will be demonstrated at the annual event of Samsung in New York on August 7, and it is also expected that it will be available in the US and Korea from August 23.
Samsung has announced that the unpacked event will take place as planned but has not announced the official release date.
Lee Jae Young, Samsung’s vice chairman, was in Japan last week to meet with the company’s partners. discuss last weekend how to respond to a trade dispute.
“Trade restrictions can adversely affect the Japanese materials industry, as Korean technology companies are among their main customers,” said Li Su-bing, an analyst at Daishin Securities, and predicted that the Japanese government would not ban the export of chaos in the global industry. chips. and the electronics industry.
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